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What awaits the price of Bitcoin in the coming sessions?

Oct 28, 2020 Forex News

Everyone knows that when Bitcoin whales make large transactions, the price of Bitcoin changes. Thus, they have an impact on the price. However, soon there may be more such Bitcoin whales and the price of Bitcoin may become regulated. Glassnode has presented a report that demonstrates that the number of addresses that own more than $1 million in Bitcoins is growing, and currently, their number has exceeded 20 thousand. Their number increased significantly during the last rally. This, incidentally, may indicate that the price has reached the top of the rally.

As practice shows, when the market demonstrates such a sharp growth (the price has grown by almost 23%), it is followed by a short-term correction. Such a correction is most often caused by profit-taking.

The RSI technical indicator confirms the possibility of a correction.

At the same time, it should be noted that if earlier the majority of the Bitcoin market was made up of futures, now, after the fall of BitMEX, spot transactions make up most of the market. Therefore, it is likely that investors will not rush to fix profits around $13900 and will wait for the breakdown of this resistance. This level prevented the bulls from pushing the price higher in June last year.

It should be noted, however, that the Bitcoin price has practically no resistance above the level of $13900. Therefore, if the resistance level is overcome, the pair BTC/USD may reach a new maximum.

In the current situation, analysts assume that in the case of a correction, the pair BTC/USD will not fall below $12500.