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September 26, 2020
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Guide & Analysis

Bitcoin ready to hit $ 10,500 before halving

With a few days to go before halving, Bitcoin is trying to bring down the resistance by $ 10,000. After the breach, BTC is very likely to escalate quickly to $ 10,500

Bitcoin is back in the spotlight after making $ 600 in earnings today. With bulls having firm control over Bitcoin price action, indicators show that the BTC trend is expected to continue to $ 10,500.

Bitcoin started to rise in the last few hours to reach a high of $ 9,900, despite bearish market conditions. The increase allowed to demolish the enormous resistance that was at $ 9,600.

Here, the IntoTheBlock’s “In / Out of the Money Around Price” (IOMAP) model estimated that more than 1.2 million addresses were over 930,000 BTC.

Now that the main cryptocurrency has broken resistance, there is only one way to go: up.

If the buying pressure behind the cryptocurrency continues to increase, the next barriers to watch for are the top in mid-February and the 127.2% Fibonacci retracement level. These barrier points are $ 10,500 and $ 10,900, respectively.

Bitcoin US dollar price chart

BTC / USD on TradingView

However, it is important to remember that the erratic behavior seen recently can be part of a configuration. Big holders may be launching Bitcoin before halving to dump their holdings on unconscious investors.

Are the whales going to dump their BTC?

There has been a noticeable change in the way that large holders of 1,000 to 10,000 BTC have behaved. These great players were slowly decreasing their positions, but in the last few days they started to accumulate. The sudden change could signal that market makers are actually preparing to dump at the top, according to Santiment. You can learn more about this subject by clicking here.

The crypto information and data platform said similar behavior appears to be happening with idle currencies, which are suddenly on the move. The goal behind this may be to “sell to newcomers”. Those who get involved in the “halving rally” can find BTC in the big whales.

Bitcoin’s Holder Distribution by Santiment

Distribution of Bitcoin holders by: Santiment

This type of market manipulation strategy was seen in previous moments. Therefore, anyone who panics must remain cautious so that prices do not reverse.

The $ 9,440 support level now has a lot of importance for Bitcoin’s rise. This support barrier must reject a fall to maintain the trend’s continuity. Otherwise, it would be very likely that the main cryptocurrency would reverse and liquidate those who were late for the party.

If that happens, the next major level of support is around $ 8,300.

Source: CryptoBriefing

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