Bitcoin’s price movement has been restless to say the least. The recent rally to new all-time highs of $ 24,200 was quickly sold by whales and other major investors, who pushed the price to lows of $ 22,000 before the sell-off reversed.
In the meantime, crypto has consolidated and seen several moves in either direction that did little to provide any insight into its near-term prospects.
It still faces several hurdles before it can build a new leg higher, with bears offering serious resistance throughout the lower $ 24,000 region – something that has not yet been retested by crypto in the aftermath of its initial rejection.
One serious indicator that could suggest that Bitcoin will stagnate for some time is the increase in whale inflows into exchanges, which historically is a sign of impending selling pressure.
A well-known on-chain analyst spoke about this trend in a recent tweet, stating that while Bitcoin is seeing a strong sell-off due to this trend, the massive organic buying pressure may be enough to absorb it.
Bitcoin is struggling for momentum due to the resistance of $ 24,000
Bitcoin rebounded sharply from its recent lows overnight, and the bulls have seen some serious follow-up in the period since it fell to lows of $ 22,000 after being rejected in the lower $ 24,000 region.
Where there are short term trends should depend largely on whether bulls can break above $ 24,000 and convert that into a region of support.
The fact that any tempered move rises higher as BTC approaches this region is facing serious resistance is a serious sign.
On-chain analyst: Whale activity could indicate increased selling pressure
The CEO of CryptoQuant – an on-chain analytics firm – recently stated in a tweet that whale inflows in exchanges, coupled with increased trading activity, suggest these big Bitcoin holders are taking profits off the table.
This could be the reason why the price development is stagnating and the medium term growth could be further hampered.
“I am aware of the risk of dumping as whales are active on exchanges, but I don’t miss BTC as the purchasing power is so strong now. I’ve been stuck with little leverage for a long time. When this indicator hits 2 BTC it is likely sideways or bearish. It has always been sideways since November. “
Image courtesy of Ki Young Ju.
The coming days should shed some light on how influential whales will be on the price of cryptocurrency in the coming days.
Featured image from Unsplash. Price data from TradingView.