- BTC / USD is trading at $ 12,947 after a colossal rally towards $ 13,250.
- It seems that nothing stops Bitcoin. However, some indicators have turned bearish.
Bitcoin has again surpassed 60% of the market dominance and has risen above the $ 13,000 level for the first time since June 2019. In the last week alone, the total market capitalization of BTC has increased by more than 31 billion dollars.
Bitcoin could face a short-term pullback
The flagship cryptocurrency is up 13% in the past 48 hours following an announcement from PayPal to support digital assets such as BTC, ETH, BCH, and LTC. The bulls are targeting the $ 20,000 level. However, there is a chance that Bitcoin will face a pullback first.
BTC / USD 12 hour chart
The TD sequential indicator has presented a sell signal on the 12-hour chart, the first since September 18. Furthermore, the RSI is very spread, which also adds more selling pressure to Bitcoin.
Bitcoin money inflow and outflow chart
The money inflows and outflows chart shows that the next substantial support area is between $ 11,721 and $ 12,107, which means that Bitcoin could see a pullback to $ 12,107 and possibly the psychological support level at $ 12,000.
Bitcoin Fork Distribution Chart
Another worrying trend can be seen using the BTC fork distribution chart. It appears that the number of whales that have between 10,000 and 100,000 coins has decreased by seven in the past week, indicating that they are collecting profits.
BTC / USD 4 hour chart
Nonetheless, most time frames are still in favor of the bulls, maintaining upward trends. The 4 hour chart presents a possible bullish flag with a MACD gaining a lot of traction. The price is well above the SMA and EMA.
Looking at the same money inflow and outflow chart above, we can also notice that the resistance above the $ 12,899 level is weak compared to the support. Another break above the round level of $ 13,000 can take BTC / USD up to $ 14,000.
Crucial price levels for Bitcoin investors
Despite bullish sentiment in Bitcoin and across the cryptocurrency market, the flagship cryptocurrency could be facing a short-term pullback before climbing to its all-time high of $ 20,000. Validating the sell signal on the 12-hour chart can cause BTC to drop to $ 12,000.
On the other hand, the bulls are still in control over most time frames and are targeting the $ 14,000 level as the next target. A break above the new psychological resistance level at $ 13,000 can achieve this goal, as the money inflows and outflows chart shows very little opposition to the upside.
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Credits: Forex Street
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