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

Spread the love
  • 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.

RECOMMENDED READ:  Wall Street’s Interest In Cryptocurrency Could Attract Institutional Investors

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

 368 Interactions,  2 today

Stellar Lumens, Aave, Cosmos Price Movement Analysis for 11th April, 2021

Stellar Lumens moved within a bull flag pattern, but the pattern may be reversed if $0.58 -help is not sustained. Read more

Algorand, Bitcoin Cash, FTX Token Price Movement Analysis for 11th April, 2021

Algorand wasn't yet able to ascend above its horizontal channel. If the bulls can prevent a collapse in the coming Read more

Cardano, Bitcoin SV, Compound Price Movement Analysis for 11th April, 2021

Cardano observed a pattern of declining exchange rate, indicating that the market was likely in a delivery process. However, in Read more

Why retail Bitcoin traders should foresee a price increase

Big Bitcoin wallet inflows indicate a bullish pattern turnaround in the coming week. The price is currently about $60000; but, Read more

Where are ADA, ETH,  DOT, and UNI price movements heading?

Based on price action in March and the first ten days of April, a pattern has appeared on the price Read more

Bitcoin Price Movement Analysis for 11th April, 2021

Is Bitcoin nearing its peak? It's unlikely. Many on-chain measurements revealed that, although Bitcoin was highly bullish, it had not Read more Coin, Hedera Hashgraph,Monero Price Movement Analysis for 11th April, 2021 Coin was under selling pressure at $0.23, but it still had help in the $0.19-$0.2 range. Hedera Hashgraph would Read more

Litecoin Price Movement Analysis for 11th April, 2021

Since the beginning of the year, the price of Litecoin has increased significantly. LTC was returning 93 percent year to Read more

Ripple’s CTO comments on XRP’s greatest achievement.

Bill Gates made a remark a few years ago claiming that digital currencies are the future of banking. With technologies Read more

Chainlink, BitTorrent, Elrond Price Movement Analysis for 11th April, 2021

Chainlink traded in a narrow range of $33.1-$31.2, with low volumes working towards a bullish short-term result. BitTorrent Token was Read more

Leave a Reply

Contact Us