Bitcoin dives from multi-yearly high to $18,400 despite positive on-chain metrics

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  • Bitcoin price slumps to test support at $18,400 and the 50 SMA, respectively.
  • The IOMAP on-chain model reveals that the least resistance path is upwards.

Bitcoin price has been engulfed in selling pressure after failing to hold firmly above $19,000. The resistance at $19,500 remained unchallenged, giving bears ample time to increase their orders, thus creating enough volume to force Bitcoin onto lower support areas.

Bitcoin to slide to $15,500 if this key support caves

The flagship cryptocurrency also failed to hold above the ascending parallel channel’s middle boundary. This encouraged more sellers to join the market due to the need to cash out and make profits in case the breakdown becomes extensive.

Bitcoin retested support at the 50 Simple Moving Average on the 4-hour chart around $18,400. At the time of writing, recovery is ongoing and BTC is teetering at $18,800. To sustain the uptrend and reclaim the position above $19,000, the bellwether cryptoasset must close the day above two critical levels: the 50 SMA and the channel’s middle boundary.

BTC/USD daily chart

BTC/USD price chart
BTC/USD price chart by Tradingview

In the event declines explore the levels under the 50 SMA, Bitcoin might plummet to $15,500, support highlighted by the 200 SMA. Note that selling pressure is likely to soar below the ascending paralleling channel, perhaps strong enough to overshoot the subtle support at the 100 SMA.

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IntoTheBlock’s IOMAP model shows a completely different picture. The least resistance path is upwards according to this on-chain metric. The only considerable resistance zone runs from $19,214 to $19,311. Here, 356 addresses previously bought roughly 2,700 BTC.

Bitcoin IOMAP chart

Bitcoin IOMAP model
Bitcoin IOMAP model by IntoTheBlock

On the downside, the king of cryptocurrencies seems to be sitting above an area with immense support. The most robust support holding between $18,268 and $18,828. Here, 1.15 million addresses previously purchased around 671,800 BTC. It is doubtful that Bitcoin will penetrate through this strong support. However, if it does, the bearish outlook to $15,500 would be validated.

Bitcoin intraday levels

Spot rate: $18,800

Relative change: 86

Percentage change: 0.5%

Trend: Short term bullish bias

Volatility: Low

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