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  • Bitcoin’s price seems to be overextended after a massive rally to $14,000.
  • Several on-chain metrics and indicators suggest that the flagship cryptocurrency is poised for a correction.

Bitcoin is trading at $13,857 after hitting a low of $13,512 in the past 24 hours. It seems that the uncertainty around US presidential elections is not stopping the digital asset from climbing towards $14,000. As of now, it’s still not clear who will be the winner of the US elections, President Donald Trump or former vice president Joe Biden.

Several on-chain metrics show that Bitcoin is facing intense selling pressure. On November 3, a whale moved close to $1 billion in Bitcoin from the current fourth-largest wallet. CryptoQuant also recorded a massive spike in exchange inflow.

Bitcoin Price Prediction: The full analysis

On the daily chart, the TD Sequential indicator has just presented a sell signal at around $14,000. The RSI remains overextended and the SAR points flipped bearish for the first time since October 8, further increasing the selling pressure.

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BTC/USD daily chart

One of the most concerning on-chain metrics that suggest a massive growth of selling pressure is Bitcoin’s exchange inflow. Cryptoquant has recorded a significant spike in BTC exchange inflow, which means that whales are ready to sell.

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BTC Exchange Inflow chart

Additionally, the Age Consumed metric, which tracks the movement of dormant coins, has presented a huge spike not seen since July 2019. This statistic also adds support to the increased selling pressure for Bitcoin.

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BTC Age Consumed chart

If the sell signal on the daily chart gets validated and selling pressure continues, we can easily see Bitcoin’s price dive towards $13,000 to re-test the psychological level and fall as low as $12,684, a strong support level. 

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BTC IOMAP chart

On the other hand, the In/Out of the Money Around Price (IOMAP) model shows virtually there’s no opposition on the way up. The area between $13,421 and $13,826 is a robust support range where 1.26 million addresses bought close to 800,000 BTC. A breakout above the psychological resistance level at $14,000 can push the Bitcoin price up to $16,000.