Bitcoin price analysis shows that it looks ready to advance past $11,000 after days of consolidation. Bitcoin consolidated within a narrow range over the last days, which came after its 19% drop at the beginning of September. On BTC’s charts, prices are contained within an ascending triangle. A rising trendline is developing along with the swing-lows while a horizontal line formed along the swing-highs.
It struggled to break out of this technical pattern on Sept. 13, but it quickly reversed to retest the channel’s boundaries at the triangle’s hypotenuse. A spike in demand around this support level looks strong enough to allow Bitcoin to bust through resistance, making it advance beyond the $11,000 mark.
By measuring the triangle’s highest points and adding it to the breakout’s distance, the technical pattern shows that BTC is poised to rise as much as 7%. In the best-case scenario under that assumption, a bullish impulse that breaks resistance could send prices as high as $11,330.
One indicator from analytics company IntoTheBlock affirms the bullish outlook. The “In/Out of the Money Around” (IOMAP) price model shows cohorts of buyers and what they paid to earn their coins, which gives a good approximation of the average purchase price for different segments of Bitcoin owners. Based on this on-chain metric, there aren’t significant supply barriers ahead that would obstruct the rise to $11,300.
However, a further advance could be difficult; around the $11,300 mark, 1.3 million addresses purchased over 930,000 BTC. These traders are more inclined to exit their currently positions as prices rise.
On the support side, the IOMAP cohorts also indicate strong buy-in for Bitcoin around $10,200, which is also where the hypotenuse of the technical pattern mentioned above sits. Approximately 1.8 million addresses bought 840,000 BTC around this price level. The convergence of these two barriers should sustain prices above the $10,000 mark.
Investors remain concerned about a further downturn in the cryptocurrency market. Bitcoin’s CME gap at $9,615 is hunting those who are betting to the upside. Even trading veteran Peter Brandt has spoken about the reality that BTC could dive below $9,000.