Bitcoin kicked off the week of Oct. 19 with a bang. The flagship cryptocurrency saw its price surge nearly 4.5% to trade at a high of $11,995 on Oct. 20. While many investors are seeing profits, different metrics show that this Bitcoin surge may not be done.
Bitcoin sits on top of a massive supply wall
From a fundamental standpoint, Bitcoin could be on the cusp of a new bullish cycle. IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model shows that Bitcoin sits on a massive supply barrier. Roughly 3.5 million addresses had previously purchased nearly 2 million BTC between $11,240 and $11,940.
Such an important area of interest may have the strength to keep falling prices at bay in the event of a correction. Holders within this price range will likely buy more tokens to avoid seeing their investments go into the red. That means the odds currently seem to favour the bulls, and an extension of this Bitcoin surge.
On the flip side, the IOMAP cohorts show little to no resistance ahead, even after the recent Bitcoin surge. The only crucial hurdle to pay attention to lies at $12,160. Here, fewer than 123,000 addresses are holding approximately 60,000 BTC.
Technical analysis: BTC isn’t out of the woods yet
Although the fundamentals show that a bigger Bitcoin surge could be imminent, the technicals add importance to the $12,160 resistance level. This hurdle sits next to the upper boundary of an ascending parallel channel that has been able to contain BTC’s price action since the September market crash.
Each time Bitcoin has risen to the top of this technical formation, it’s dropped to hit the
