- Bitcoin has comfortably broken the $12k ceiling
- With this move, BTC addresses in profit have hit a new all-time high of 30.4 Million
- It is still too early to comfortably declare that $12k is a new support zone for Bitcoin
- Timothy Peterson had forecasted that by November 30th, Bitcoin will be at $12k or above
- $12k could very well be a new battlezone for Bitcoin similar to $10k in September
A few hours ago, Bitcoin (BTC) broke through the $12,000 ceiling and posted a local peak of $12,313 – Binance rate. With this move, the amount of Bitcoin addresses in profit has hit a new all-time high value of 30,403,795. This is according to data from Glassnode shared via the following tweet.
Previous ATH of 30,374,328.292 was observed earlier today
— glassnode alerts (@glassnodealerts) October 21, 2020
Will Bitcoin Hold its Own Above $12k?
The big question now is whether Bitcoin will successfully turn the $12,000 price area into a substantial support zone.
Bitcoin breaking $12k this year had been forecasted by Veteran crypto analyst, Timothy Peterson. Mr. Peterson used his time tested Metcalfe model to predict that Bitcoin will be at this price level by November 30th. Therefore, it is highly likely that the $12,000 price area might be Bitcoin’s battlezone in the days and weeks to follow. His analysis can be found below.
— Timothy Peterson (@nsquaredcrypto) October 11, 2020
What the Bitcoin Chart Says
Many Bitcoin traders had been cautiously optimistic regarding the short term value of BTC given that the US elections are now less than two weeks away. With this mega event in mind, the daily BTC/USDT chart below might provide additional clues as to what the future holds for Bitcoin leading up to November.
From the above daily BTC/USDT chart, the following can be observed.
- Bitcoin is in bullish territory given that its price is above the three moving averages (50-day, the 100-day and 200-day)
- Trade volume is in the green with the daily MACD confirming the bullishness
- However, both the daily MFI and RSI are pointing towards exhaustion at values of 74 and 78 respectively
- Bitcoin’s next level of resistance stands at $12,400
- Short term support lies at $12,100 and $12k
- Loss of $12k could lead to Bitcoin retesting $11,700 or even $11,500
Summing it up, Bitcoin has broken the important $12k ceiling in a move that has resulted in a record number of 30.4 million BTC addresses being in profit. Bitcoin’s move above $12,000 is monumental but leaves a lot of questions as to whether BTC can maintain this level with the US elections only days away.
However, analysis by Timothy Peterson using his Metcalfe model indicates that Bitcoin should be at $12k on or before November 30th. This means that Bitcoin could very much turn this $12k region into a new battlezone heading into the month of November in the same way $10k was a battlezone in September and early October.
The team at Bloomberg had also predicted that Bitcoin could very much retest its 2019 high of $14k by the end of 2020.
Additionally, the daily BTC/USDT confirms the bullishness with a slight caution of a possible pullback indicated by a high daily MFI and RSI.
As with all analyses of Bitcoin, stop losses and the use of low leverage is advised when trading Bitcoin on the various derivatives platforms. Partial profit-taking might also be wise for those who went long given the uncertainty surrounding the November elections.