The FOMC meeting of the week helped BTC regain some ground. The leading crypto is now trying to maintain the $17,000 support after returning some of its gains. Analysts are mapping short-term moves for Bitcoin price to reach $20,000.
Why was Bitcoin programmed to $20,000?
Bitcoin price has set four highs and four lows in the past three weeks. Connecting these swing points using trend lines indicates an ascending parallel channel formation. This development saw an uptick pushing BTC above the channel due to the volatility triggered around the FOMC meeting.
While volatility is now relatively low, Bitcoin price is cooling down and returning to the ascending parallel channel. Meanwhile, investors are waiting for new buyers to come from the $17.01-16.830 region. Overall, the $16,800 to $17,000 range is a strong support area. Hence, this is where the Bitcoin price will most likely bounce. Beyond this range, the $16,500 level is a good foothold where sideline buyers can hoard BTC at a discount.
A bounce from any of the support levels mentioned above will result in market players targeting the next key level at $19,200. This scenario, put forward by technical analyst Akash Girimath, represents a 16% rise for the bulls overall.
On-chain metrics point to a bullish BTC
While the bullish outlook for bitcoin price doesn’t make sense, on-chain data supports this view. IntoTheBlock’s In/Out of the Money (GIOM) model shows that the critical resistance of $18,000 is relatively weak. It also points out that the target beyond this will be $20,267.
There are roughly 4.78 million addresses here that bought 2.34 million BTC at an average price of $20,267. It is possible that some of these investors will end the uptrend by selling their holdings at breakeven. In addition, investors may show a more hesitant situation during this time. That makes around $19,200 or lower a ‘take profit’ zone in anticipation of a trend reversal at $20,267.
Also, whales holding 100-1,000 BTC are increasing their savings after the FTX crash in the first week of November. These wallets increased from 3.85 million to 3.9 million. This shows that 50,000 BTC was collected by the ‘smart coin’. This accumulation last happened in March, when the price of Bitcoin rose 23% after this group of investors had accumulated 30,000 BTC. If history repeats itself, another explosive move in Bitcoin price is possible.
All in all, the bullish look makes sense from a technical and on-chain perspective. However, traders need to be cautious around the $16,500 support level. Breaking the resistance in question will invalidate the bullish thesis for Bitcoin. This development could trigger Bitcoin price to sweep the sell-stop liquidity and drop below $15,460. cryptocoin.comAs you follow, some analysts predict that these levels will emerge in a very short term.
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