- Bitcoin sits on top of an important supply wall that could prevent it from retracing
- Ethereum, on the other hand, could be rejected by a significant resistance barrier that lies ahead
- Meanwhile, XRP has been consolidating without providing a clear path for the direction of its trend
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Bitcoin, Ethereum, and XRP prices are falling behind while small-cap altcoins see preposterous levels of growth not seen since 2017. Indicators point to impending volatility, and the impact on prices will be explosive.
Bitcoin Camps on Hefty Support Level
Bitcoin prices bounced within an ascending channel since the beginning of the month. The upper and lower boundaries of this technical formation prevented movement outside of these price levels.
Overhead resistance rejected an advance in mid-August. BTC responded by correcting to the lower support level. Given the price history of the last month, it is reasonable to assume that Bitcoin will once again rebound from the lower support boundary.
If combined with a spike in buying pressure, BTC prices could reach $12,250, or even a new yearly high of $12,800.
The TD sequential indicator adds credence to Bitcoin’s optimistic outlook. This technical index recently presented a buy signal on BTC’s 12-hour chart. The bullish formation developed as a red nine candlestick, estimating a one to four 12-hour candlesticks upswing or the beginning of a new upward countdown.
In the event of a bullish impulse, IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model reveals there is a crucial resistance level ahead of Bitcoin that could hold surging prices at bay. Based on this on-chain metric, roughly 800,000 addresses had previously purchased nearly 440,000 BTC between $11,800 and $12,150.
Such a significant supply barrier may have the ability to absorb some of the buying pressure. If prices advance to this level, holders who have been underwater may try to…