This Metric Shows Bitcoin is Ultra-Bullish Despite Waning Momentum
Bitcoin’s 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 hasn’t 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 cryptocurrency’s 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 declining BTC exchange balances, noting that this shows that retail investors and whales alike aren’t interested in selling their BTC at the current price levels.
“Bitcoin’s macro view remains bullish as the Exchange $BTC Balances continue to decline sharply since March (whales are not yet selling. Even at $13,000.) There’s also around 136k BTC currently locked in WBTC/RenBTC.”
Image Courtesy of Squeeze. Chart via CryptoQuant.
The coming few days should shine a light on whether or not bulls will translate this fundamental strength into further upside.
Featured image from Unsplash. BTCUSD pricing data from TradingView.