Bitcoin Indicators Point to Move to $20,500

Kataryna Habeliia December 8, 2020

Bitcoin indicators point to move to $ 20,500

Bitcoin is still showing consolidation between $ 19,000 and $ 19,500. Recent attempts to strengthen the uptrend to $ 20,000 have been thwarted just below the critical resistance level of $ 19,000. At the same time, the pioneering cryptocurrency has consolidated above 50 simple moving averages. A breakout is expected to push Bitcoin above $ 20,000 soon.

Meanwhile, the flagship cryptocurrency is trading at $ 19,182 while holding more than two vital levels – the 50 SMA on the 4-hour chart and the middle border of the Bollinger Bands. Closing the day above these key levels will encourage buyers who have retreated to the sideline to return to the market.

Enough trading volume is required to drive BTC above $ 19,500. At the moment, the path of least resistance lies in the lateral direction, besides, the relative strength index is located horizontally along the middle line.

A breakout is expected soon, mainly due to the compression of the Bollinger Bands. Compared to the beginning of December, the volatility is low. That is, as volatility returns to the market, BTC will prepare for a massive swing.

According to the IOMAP IntoTheBlock model, the breakout is likely to be directed upward. The stubborn resistance currently ranges from $ 19,233 to $ 19,252. Previously, in this range, almost 174,000 addresses bought about 66,000 BTC.

On the other hand, Bitcoin has strong support – from $ 18,634 to $ 19,195. Here, roughly 1.8 million addresses have profited from nearly 999,500 BTC purchased in this range. It is unlikely that the recession will take place at all and will exceed the accumulation of buyers.

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