Bitcoin swiftly and very skillfully worked out Wednesday and Thursday’s forecast.
After the downtrend resistance line (green slanted dotted line) and the horizontal level of 47,848.69 were very nicely confirmed by the pullback as support, the price painted the second flag, reaching local resistance 51,697.58 (green horizontal dotted line).
After such a beautiful triggering of technical analysis (everything is like a textbook!), We will immediately assess what further scenarios may be. Now the consolidation below the level of 51,697.58 within the framework of drawing the flag canvas may continue. And then either a reversal and a decline to the level of 47,848.69, or a breakdown of the current border of 51,697.58 and an increase to the next target of 53,643.90.
The accumulation of Bitcoins continues
This has been previously reported by Glassnode . Similar data was published Friday by on-chain analytics firm CryptoQuant. Overall, they said, the trend towards the net accumulation of bitcoins continues.
According to CryptoQuant, the main cryptocurrency miners remain bullish on the bitcoin price. Their inventory balance has so far reached a six-month high.
An article from CryptoQuant analyst Venturefounder mentioned miners now have more bitcoins than when the main cryptocurrency was trading at an all-time high of $69,000.
The article also stated that since July this year, miners have been buying more to build up reserves.
Accumulation is similar to the September story: should we expect a new upward impulse?
The CryptoQuant report also revealed that Bitcoin is now facing a second accumulation period. Recently, about 3,700 Bitcoins have been transferred from centralized crypto exchanges.
The author of the report emphasizes that these data are similar to the level of accumulation in September. Then after that, the price of BTCUSD rose by about 70% from a low of $41,000.
Does this mean that a similar price impulse can occur now?
Bitcoin whales sell some of their coins
Additional data from CryptoQuant shows the Exchange Whale Ratio data hit an annual high above 0.65. This means that the whales are dumping some of their bitcoins.
Until the major cryptocurrency surpasses the $51,000 level, the report says traders need to be on the lookout. Once the $51,000 bar is hit, another major resistance will occur in the $56,800 area. The same is indicated by the technical analysis data, although my forecast speaks of two levels: in the area of 56,000 and 59,000 per bitcoin.
The material has been provided by InstaForex Company – www.instaforex.com