The king of cryptos evolved in the green during the weekend. Which allowed it to form a crucial resistance around $19,951. A break above this hurdle could trigger a bull run for Bitcoin to important levels. This will indicate the start of a bullish week.
Bitcoin (BTC): the bulls preparing a bull run?
Bitcoin price remains in a compression since the June 18 crash. Note that this fall formed the bottom at $17,593. Since then, market makers have continued to clear crucial levels on both sides. All these movements thus form a kind of compression on the price of Bitcoin. The most recent reversal low, or swing point, is found at $17,935. This is a low formed on October 13 that served as a sweep of all sell orders below the June 19 low.
This is an interesting move to enter a long position. Indeed, a long position in Bitcoin could have benefited from a bull run towards $19,951.
Although the crypto closed a 12-hour candle above, investors should wait for further confirmation. If the price of Bitcoin continues to move above this level, it could reach $22,000. But before that, he will have to overcome two hurdles which are at $20,300 and $20,737.
In such a case, investors may consider a 13% run on Bitcoin.
On-chain data in favor of buyers?
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model also shows a potential reversal of the 30-day EMA and an upward trend. Indeed, the transaction data indicates the purchase of 1.30 million BTC by 2.41 million addresses. The average price for these transactions is $19,184.
These buyers are likely to add more Bitcoin to their wallets if the price of Bitcoin drops. Which will help absorb the selling pressure on Bitcoin and slow the current bear run. Additionally, in-the-money bulls outnumber out-of-the-money bears. The latter are then likely to be defeated in the event of a peak in buying pressure.
We can see that technical data and on-chain data align. Thus, there is a good chance that Bitcoin will experience a bull run this week.
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