Bitcoin price is currently down nearly $400 from yesterday’s highs in a flash, after coming close once again to the $12,000 resistance level. According to a crypto analyst referencing on-chain analytics, once $12,000 is broken through cleanly by bulls, there’s “clear skies” above that until $16,500 – which they claim is just a minor “speed bump.”
Technical analysis also demonstrates just how critical $12,000 has been to Bitcoin and its ongoing bear market, and why it may remain the key to fully unlocking the power of the next bull run.
On-Chain Volume Analysis Shows “Clear Skies” For Bitcoin Above $12,000
At this point, $10,000 feels like an afterthought, and now the leading cryptocurrency by market cap faces $12,000 as the de facto resistance level to break.
$12,400 is the current 2020 high, but after Bitcoin has now spent its longest stretch above $10,000 in its history, and fundamental health improves by the day, it is only a matter of time until $12,000 is taken out as well.
Bitcoin On-Chain Analysis Shows $12,000 Significance | Source: Byzantine General Via Twitter
When that happens, according to a top crypto analyst sharing an on-chain volume profile analysis, it is “clear skies” for Bitcoin. Aside from a small “speed bump” at $16,500, new all-time highs and a return to price discovery could be next.
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But it all depends on this key level, which is clearly the most dominant level left on the on-chain volume analysis profile shared by the analyst. The current cluster is what is keeping Bitcoin trading sideways, and the only other comparable volume clusters lie below at $3,200 or lower.
Technicals Highlight How Critical $12K Is To The Cryptocurrency’s Bull Breakout
$12,000 is also the technical level to beat, matching the on-chain volume profile analysis above. Bitcoin only traded two weeks of 2018 above $12,000, then has never closed a weekly candle above that level, not even in 2020.
BTCUSD Weekly $12,000 Resistance Level Technical Analysis | Source: TradingView
When that does happen, the next logical target is a retest of the 2019 high at $13,800, and beyond that, is the “speed bump” on-chain analysis shows that could cause a short-lived pause in any uptrend.
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$12,000 is the line separating Bitcoin from a bear or bull market. Beyond that level, however, as the trader says, its clear skies for the crypto asset, and likely new all-time highs set each new passing month until the next peak is in.
Featured image from Deposit Photos, Charts from TradingView
The Number of Bitcoin Whales Has Never Been Higher
- Bitcoin has been seeing some strong price action throughout the past few days
- Bulls have been in firm control, with bears struggling to gain any ground as they fail to spark any meaningful selloffs
- This price action has allowed BTC to form a market structure that is arguably the strongest seen since before the late-2017 decline
- This strength is likely to continue growing as BTC shows signs of breaking above its key near-term resistance level
- A break above $13,200 coupled with a flip of this level into support could propel it up towards $14,000
- This comes as the number of large Bitcoin holders grows at a rapid pace
Bitcoin is stronger than it has been in years, with bulls currently moving to shatter the resistance that sits at $13,200 as they try to sustain its recent momentum.
This current strength comes close on the heels of a bullish weekly close that helped the cryptocurrency solidify its mid-term strength.
It is important to keep in mind that yesterday’s weekly candle close was the first one seen above $11,700 since early-2018.
It appears that an accumulation trend amongst massive buyers could be driving this strength, as the number of Bitcoin wallet addresses holding over 1,000 BTC just hit a fresh all-time high.
Bitcoin Moves to Break Key Resistance Following Weekly Close
Yesterday’s weekly close undoubtedly provided the cryptocurrency with some technical strength.
At the time of writing, Bitcoin is trading up just over 1% at its current price of $13,200. This is the resistance level that it has been struggling to break over the past week.
If it flips this level into support, it could act as a strong base that allows it to see significantly further momentum in the days and weeks ahead.
BTC Driven Higher by Accumulation Phase from Large Buyers
One potential suspect behind the recent Bitcoin uptrend could be large buyers who have been accumulating massive positions in the cryptocurrency.
While speaking about wallets holding 1,000 or more BTC, data aggregator Unfolded explained that the number of these wallets just hit an all-time high.
“Bitcoin addresses with balance ≥ 1000 BTC hit a new all-time-high,” Unfolded said while pointing to the below chart from Glassnode.
This trend suggests that so-called “smart money” is flocking to Bitcoin in droves, which is a likely sign that this ongoing uptrend is just getting started.
Featured image from Unsplash. BTCUSD pricing data from TradingView.
New Siberian Bitcoin mining center set to provide 100 jobs to locals
The governor of the Republic of Buryatia, Russia signed a decree allowing for the construction of a 13.6 acre data center in Southeastern Siberia. The facility will become home to a number of hi-tech activities, including a Bitcoin (BTC) mining operation.
The facility will be built by BitRiver and is expected to create up to 100 local jobs. It will be equipped with the latest generation of ASIC miners and will take about a year to complete. In addition to cryptocurrency mining, the facility will be used for Big Data and the Internet of Things. The required investment is estimated at 691 million rubles or $0.9 million, to be provided by investors from the U.S.A., China, and Japan.
Siberia is one of the more attractive places in the world for Bitcoin mining. Its abundance of natural resources translates into low electricity prices, and its cold climate means that the miners do not have to spend as much energy on cooling. Is proximity to China, the main producer of mining equipment, should also make the outfit’s supply chain more efficient.
It is possible that these advantages will be negated by the legal uncertainty surrounding the regulation of crypto mining in the region, however.
Bitcoin Resilience Remains As Stock Market Closes Worst Day In Months
The stock market yesterday closed its worst single-day decline in nearly two months, causing the richest people in the world to lose over $14 billion in net worth. Bitcoin also pulled back yesterday, but as of this morning is already trading higher than before, while the S&P 500, the Dow Jones, and the Nasdaq continue to plunge.
What’s causing this sudden divergence between the two vastly different asset classes that all this year have been tightly correlated, and can the leading cryptocurrency by market cap keep it up?
US Indices Tank As Election Day Draws Closer, Uncertainty Turns To Fear For Stock Market Investors
The incredibly controversial showdown between President Donald J Trump and former Vice President Joe Biden will culminate on November 3rd, and US stock market investors are de-risking ahead of what could be a stormy time for the country.
Coinciding with the political climax is a second wave of the pandemic, and what is expected to be the least profitable Q4 in years for the retail industry.
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The fear of the unknown and potential changes to corporate and capital gains tax laws has investors selling ahead of the year-end, booking what has likely been a surprisingly profitable year for most, considering the condition of the economy.
Bitcoin rises while the Dow Jones plunges to worst day in months | Source: BTCUSD on TradingView.com
All of this combined caused major US stock indices such as the Dow Jones Industrial Average to close their worst day in the last two months. But what’s really interesting about this, is the fact that Bitcoin has been rallying to new 2020 highs while the stock market its been correlated to all throughout 2020 has been falling.
Bitcoin Resilience And Decoupling Discussions Turns Crypto Market To Greed
Bitcoin had a strong pullback yesterday as the Dow Jones, S&P 500, and Nasdaq all broke down from support. Each major US stock index headed lower as of this morning’s opening bell.
The leading cryptocurrency by market cap, yet again set another new high for the year today, demonstrating a strong bullish trend compared to the bearish stock market. Crypto analysts have been calling for a decoupling of the correlation that’s plagued Bitcoin throughout the year.
BTC correlation with the NDX, SPX, and DJI throughout 2020 finally decoupling | Source: BTCUSD on TradingView.com
After the February peak in both stocks and crypto, Black Thursday has left the entirely different markets closely intertwined in terms of price action. But that’s finally broken, as the correlation chart indicates below.
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Bitcoin isn’t fully out of the water, however. The cryptocurrency has deviated before, and this could suggest that stocks will reverse, or Bitcoin will, putting them back on parity. However, if the decoupling truly is here, Bitcoin’s bull run could be further fueled by stock market money following where the profitability is, and that could be the cryptocurrency for the next several years.
Featured image from Deposit Photos, Charts from TradingView.com