This Metric Shows Bitcoin is Ultra-Bullish Despite Waning Momentum

Monday 26 October 2020, 5:57 AM AEST - 1 month ago

Bitcoins price has seen waning momentum over the past couple of days, with the selling pressure in the mid-$13,000 region slowing its ascent as bulls struggle to maintain their recent strength.

Yesterday, the benchmark cryptocurrency surged to its yearly highs at over $13,300, but the selling pressure here was quite significant and stopped it from seeing any tremendous momentum.

It is now consolidating around $13,000, with bulls and bears both being unable to spark any short-term trend.

It is important to keep in mind that each rejection within the mid-$13,000 region hasnt been too intense, with buyers rapidly absorbing the selling pressure. This is a bullish sign.

One analyst is now pointing to a fundamental metric that indicates serious upside could be imminent. He notes that exchange balances have been rapidly declining since March and that whales have yet to begin offloading their holdings.

Because some of the cryptocurrencys largest holders are not interested in selling their holdings at these prices, this indicates that further upside could be imminent.

Bitcoin Struggles to Maintain Momentum as Resistance Holds Strong

At the time of writing, Bitcoin is trading down just over 1% at its current price of $13,000.

BTC has been trading at this price level throughout the past few days. Bulls and bears have not taken control of its near-term trend, and the selling pressure it faces at just above where it is currently trading is significant.

The fact that this resistance has not been able to spark any selloffs is promising, however, and could indicate that bulls control its price action.

For this to be confirmed, another impulse higher that breaks the imminent selling pressure it faces is required.

This Fundamental Factor Suggests BTC is Incredibly Bullish

There is one fundamental factor that suggests Bitcoin is highly bullish despite the recent inflows of selling pressure.

One analyst pointed to declin ...

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