October 20, 2020 / Analytics

Bitcoin Price Analysis: BTC/USD Will Drop To $11,000

bitcoin forecast

There is a positive trend in Bitcoin (BTC) cryptocurrency market. However, BTC/USD is hovering below the uptrend line. Therefore, the value of the coin should correct to $ 11,000 by October 27th.

Key Points

  • BTC price has consolidated above its 100 hour moving average and it is heading towards a strong resistance barrier at $ 12,000.
  • A bearish trend line has formed with resistance around $ 11,760 on the hourly chart.
  • The nearest support barrier is at $ 11,500.

Last week, Bitcoin rate hit a local bottom around $ 11,200 and began to grow. On Monday, the upward movement accelerated, and the value of the virtual currency increased by 4% – to $ 11,822 (Bitstamp data). Then there was a correction, and a contracting triangle was formed, which was broken upwards.

According to the chart, BTC will be pumped up to $ 12,000 – roughly along this mark is the line of the bullish trend that started in March. Now it acts as a zone of resistance. If buyers fail to overcome this barrier, the price of the coin will sharply fall to the support barrier of $ 11,000. The downward movement will continue up to $ 10,500 in case of breaking this barrier.

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Analysts Are Betting On Bull Run In Bitcoin Market

Many traders believe that BTC will rise to $ 13,000 in the medium term. In this case, the asset price will break through the resistance zone, which could not be overcome in the summer of 2019 and 2020. According to analysts, the consolidation of the rate above $ 13,000 will mean the start of a new bullish trend. As a result, the BTC bull run will reach the height reached at the beginning of 2018.

The wave theory speaks in favor of the pump. Bitcoin market is in the first wave of an uptrend now because the corrective wave C ended after the dump to $ 9,900. If this hypothesis is confirmed in practice, then the coin rate will continue to grow steadily after the correction to $ 11,000. At the same time, the target of $ 13,000 can be taken as early as November this year. The only concern is the fact that the asset price is hovering below the bullish trend line. Therefore, a breakout of the $ 12,000 resistance level will be a key bull run indicator.

Technical indicators:

  • 4 hours MACD is in the bullish trend zone.
  • 4 hours RSI is above 60 (in the neutral zone).
  • Major Support Level – $ 11,000.
  • Major Resistance Level – $ 12,000.
  • The nearest pivot points are $ 11,475 and $ 12,031.
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