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  • Bitcoin (BTC) is positioned to continue growth once $13,000 is out of the way.
  • On-chain metrics support a positive outlook.

Bitcoin (BTC) hit the new 2020 high of $13,250 on October 21 and moved back below the psychological barrier of $13,000 to trade at $12,957 by the time of writing. Despite the retreat,  the pioneer digital currency is still over 14% higher on a week-to-week basis and mostly since the beginning of the day.  

Bitcoin’s average daily trading volume is registered at $27.4 billion, while its market share settled at 60.9%.

Bitcoin exchange supplies are waning

Bitcoin traders are moving their coins from the cryptocurrency exchange accounts, the recent on-chain data shows.  The coins supply on the exchanges has been decreasing sharply since October 16, meaning that the market may be ready to enter the accumulation phase. 

Bitcoin supplies on the exchanges

Source: Santiment

In less than a week, Bitcoin owners moved over 43,000 outside the exchanges amid a sharp price increase. This trend is usually a bullish signal, as it means that traders are less inclined to sell their coins. 

The daily on-chain exchange flows data confirms that the market is pivoting towards accumulating Bitcoins. According to Glassnode, over $627 million worth of BTC left the exchanges in the last 24 hours, while the net outflow exceeded $115 million. 

BTC/USD: The technical picture

On the intraday charts, BTC/USD is moving inside the narrow range limited by $12,850 on the downside and $13,000 on the upside. The channel support is reinforced by the lower line of the 1-hour Bollinger Band, meaning that the bears may have a hard time pushing the price lower.

BTC/USD 1-hour chart

However, once the barrier of $12,850 is out of the way, stronger support of $12,750 will come into focus. This line has served as a backstop for the downside correction since October 21. The overall sentiments are bullish as long as the price stays above this area. A sustainable move lower will worsen the sort-term picture and bring $12,500 into view.  It is followed by a former significant resistance of $12,000.

On the upside, a sustainable move above $13,000 will open up the way to the recent high of $13,250 with the next focus on $14,000. The market positioning data shows that there are no major barriers above the current price, meaning that the upside is the path of least resistance now.

Bitcoin’s IOMP data

Source: Intotheblock

BTC/USD: Key levels to watch

Considering the on-chain data and technical indicators, BTC is well-positioned to continue growth. However, a sustainable move above $13,000 is needed to confirm that the bullish trend is resumed. On the other hand, a move below $12,750 will invalidate the short-term bullish scenario and bring more sellers to the market with the potential downside aims at $12,0500 and $12,000.