Bitcoin Poised to Retake $12,000 — 2 Technical Reasons Why There’s Still Room To Run

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Bitcoin is currently trading at $11,771 after a significant 2.3% breakout today above the last high of $11,720 on October 12. It seems that the bulls have been able to defend the renewed daily uptrend and are close to pushing BTC above the critical $12,000 psychological level again.

According to the most recent metrics released by Glassnode, it seems that the number of whales holding at least 100 BTC reached a 6-month high of 16,159. 

At current prices, each whale is holding at least $1.17 million. The number of whales going up is usually a bullish indicator showing that more investors are willing to hold large sums of the digital asset.

Bitcoin Trading Below A Critical Trendline

It seems that Bitcoin is currently trading right below a critical trendline that has accurately been predicting the upcoming price action of the digital asset. The past closes above this trendline have led to significant gains. 

On the other hand, closes below the trendline, or rejections, have driven Bitcoin down within the next few days. The price of BTC is just above the trendline. If we see a close above this point, we could potentially see the digital asset jump by 5 to 10% within the next few days.

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Unfortunately, it seems that the RSI on the daily chart is on the verge of crossing into the overbought zone. However, the last time this happened on July 26, it didn’t really stop the price from climbing more.

Considering there are far more whales now to push the price towards $12,000, we could easily see the bulls ignore the RSI again and drive BTC above $12,000. This theory can be further confirmed by looking at the IOMAP chart.

We can clearly observe a lack of resistance above $11,700 while there seems to be significant support on the way down. According to this chart, Bitcoin could easily climb to $13,536 without much opposition in the short-term. 


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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.