As there are at least two major resistance points before it, the spike above $47,000 does not necessarily mean that the first coin is close to $50,000.
Upcoming Bitcoin resistances
As the In/Out of Money Around Price indicator developed by IntoTheBlock suggests, Bitcoin currently consolidates at a major resistance that keeps the cryptocurrency from breaking through $48,270 resistance point.
Almost 1.5 million addresses opened their positions in the range starting from $49,620, which is the next resistance. Compared to the $47,796-$49,211 resistance zone, the range is much smaller with a total volume of 1.16 million BTC.
The indicator shows that the closest support ends at $46,312.
Why does IOMAP work for Bitcoin?
Information about the concentration of funds around a certain price can give traders a hint of the potential of the asset’s pace of movement.
The predictions that traders make using the indicator are based on holders’ psychology, as traders who remain in loss for a long time tend to sell or get rid of their assets right at the point of entry to avoid losses.
Some of the funds in the $47,796-$49,211 range may be sold as the first cryptocurrencies enters the market.
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