- Bitcoin is currently trading at $10,559, right below a crucial support level at $10,600.
- If bulls can hold this level, the outlook for Bitcoin will remain positive.
Bitcoin was trading inside an ascending triangle pattern, which is created when the price establishes higher lows but not higher highs. Bitcoin price had a bullish breakout of the pattern, and it’s now retesting the upper trendline, which was resistance and has now turned into support.
BTC/USD 4-hour chart
The most critical support level for Bitcoin in the short-term is $10,600, which almost coincides with the 100-SMA. The flagship cryptocurrency is also seeing an overextended RSIC, which could indicate that a bounce is underway. The current 4-hour candlestick could end up being a hammer candlestick, which usually attempts to determine the bottom.
BTC IOMAP Chart
IntoTheBlock’s In/Out of the Money Around Price model (IOMAP) shows stiff resistance at $10,839 as well as robust support at $10,416. The idea behind this fundamental index is to show the average purchase price of Bitcoin versus its current price. A total of 965,750 addresses bought Bitcoin at an average of $10,416, with a total volume of 719k BTC. On the other hand, more addresses bought at $10,839, but the volume is lower. Investors are not happy to sell at a loss, which makes the IOMAP chart great for determining resistance and support levels.
Bitcoin Holders Distribution Chart
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Source: Santiment
However, if we look at the chart with new daily active addresses, we can clearly see a decline since September 1. Additionally, the number of Bitcoin whales holding at least 1,000 coins has dropped from a peak of 2,110 holders on September 2 to a current low of 2,100, losing 10 whales.
It seems that the general outlook for Bitcoin is bearish in the short-term, and bulls need to hold the $10,600 level. A bearish breakout of this support point will most likely take Bitcoin down to $10,200. On the flip side, if BTC starts bouncing, we could see the pioneer cryptocurrency retest $11,000.
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