From the end of September Bitcoin started with an impressive bullish rally to reach price levels around its highest point of $ 124.457. However, it remains speculative about whether the Prime Minister Cryptocurrency will maintain this momentum at the beginning of October to place a new all-time-high price, or to experience an important correction in deeper liquidity zones.
Bitcoin key levels to watch: Rally’s challenge is $ 125k resistance
In one X On 3 October the most important opinion leader (Kol) cushions that Bitcoin is again approaching critical price levels supported by data that show trading activities. Cushions based on this analysis on the order book Heatmap – Metriek, which shows the amount or the amount of hanging purchase and sales orders at specific price levels at different fairs. The indicator shows horizontal colored tires at those price levels, whereby the colors represent clusters of orders resting around those zones.
According to the Kol, Bitcoin has packed a large number of sales orders on the price level of $ 125,000. Usually a zone like this with clusters of sales orders can act as a strong resistance for the price. Interestingly, TED also cited the presence of a considerable amount of purchase assignments to the disadvantage of the price, in particular around $ 119,500 and $ 117,500. As intuitively obvious, these orders can act as solid support if the flagship Cryptocurrency experienced a correction at this level.
Warning market front views for Bitcoin
In a separate XCushions also share more insights about the price action of Bitcoin and what you should pay attention to in a potential Downswing. In particular, the analyst Bitcoin expected that an accumulation around the price level of $ 120,000 would see before he rose to around $ 124,000, a prediction that has since played, which led to a small retracement.
When analyzing the important immediate support levels, the crypto expert emphasized the 20-day exponential advancing average (EMA20), which is currently almost $ 118,447 as a vital threshold. According to pillows, if Bitcoin applies above this level, the wider trend (which is currently bullish) will most likely be retained.
On the other hand, a break below the 30-day advancing average (MA30), currently around $ 116,415, can be ominous for the cryptocurrency. De Kol explained that this situation could open the door for “a larger correction to $ 112k $ 113k”, because more liquidity will be sought.
That is why the market remains in a state of expectation to see if Bitcoin tests its higher resistance to $ 125,000 or goes back in lower zones to test its support zones. If Bitcoin would break from his current resistance zone, the market could see the continuation of its already impressive upward rally to earlier unknown terrain.
At the time of writing, Bitcoin is appreciated at around $ 122,100, with a fair growth of around 1.6% in the past day.