Bitcoin is heading into the green after breaking above $45,000.
On-chain data shows that the asset could advance to $50,000 with little opposition.
However, one technical indicator suggests that a spike in profit-taking is underway.
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Bitcoin has stolen the crypto spotlight as its price surged by more than 5.5% following Monday’s open. The sudden bullish impulse took many investors by surprise given gold’s significant losses within the same period.
Bitcoin Takes Aim at $50,000
Bitcoin looks like it could be headed towards $50,000 after another bullish move.
Recent transaction history shows that Bitcoin ( $37,661.00 ) sits on top of stable support.
Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, nearly 560,000 addresses have previously purchased more than 580,000 BTC between $43,150 and $44,540, and over 1 million addresses have bought 700,000 BTC at an average price of $39.650. Such big demand barriers could potentially have the strength to contain prices from a steep correction in the event of a sell-off.
Moreover, there is no major supply wall ahead of Bitcoin. The IOMAP model reveals that the only significant interest area sits between $48,640 and $50,000. At this price point, approximately 550,000 addresses hold nearly 361,000 BTC.
The fact that the underlying demand zone is more significant than the overhead supply area suggests that Bitcoin ( $37,661.00 ) can advance further before its next pullback.
Despite the optimism that the on-chain metrics show, some technical indicators do not look as bullish.
The Tom DeMark (TD) Sequential indicator has presented a sell signal on Bitcoin’s 12-hour chart. The bearish formation developed as a green nine candlestick, indicative of a retracement of one to four 12-hour candlesticks or the beginning of a new downward countdown.
Now that Bitcoin ( $37,661.00 ) has met the $46,000 target forecasted by the descending triangle where it broke out on Jul. 26, a spike in profit-taking seems imminent.
By considering the IOMAP model and the TD Sequential, it is reasonable to assume that Bitcoin ( $37,661.00 ) could see another leg up before the 12-hour session closes. A considerable increase in buy orders around the current price levels might push BTC toward the $48,640-$50,000 supply barrier.
Around this price level, investors could expect a rejection that sends Bitcoin ( $37,661.00 ) to the $40,000 demand wall, confirming the outlook presented by the TD setup.
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