Bitcoin’s price action has been rather mixed as of late. Although the cryptocurrency has been slowly grinding higher, the lower-$11,000 region has proven to be a heavy resistance zone that is hampering its growth.
The intensity of the selling pressure here seems to indicate that bulls may not be quite as strong as they previously appeared to be, indicating that the benchmark digital asset may be on the cusp of seeing further downside.
Despite these short-term signs of weakness, one factor that is boosting Bitcoin and could indicate that a massive upside move is imminent is a trend seen while looking towards the wallets of whales.
These large BTC holders have not been selling into this recent push higher, which is a historically positive sign that indicates upside could be imminent.
Because these large sellers can move the market, their sustained holding pattern indicates that they are waiting for higher prices before they start selling.
It could also provide the market with a boost, as there is currently less selling pressure on BTC than typically seen when it consolidates below key resistance levels.
Bitcoin Consolidates Below $11,000 as Momentum Begins Faltering
At the time of writing, Bitcoin is trading down marginally at its current price of $10,950. This is around the price at which it has been trading throughout the past few days.
Bulls have been unable to shatter the heavy selling pressure that exists between $11,000 and $11,300. Each attempt to do so has been met with spikes in selling pressure that send it back down to its current price level.
This consolidation may be coming about as bulls attempt to build up greater strength, but the multiple rejections it has faced so far does seem to spell trouble for its near-term outlook.
CryptoQuant: BTC Whales Hold Steady Despite $11k Rejections
Data from analytics firm CryptoQuant shows that whales are holding their crypto despite Bitcoin’s multiple $11k rejections.
The firm’s CEO spoke about this in a recent tweet, explaining that the Exchange Whale Ratio has now hit a yearly low, with lower whale selling rates providing a boost to BTC.
“Exchange Whale Ratio hits the year low—the fewer whales moving to exchanges, the less dumping, and makes the higher BTC price.”
Image Courtesy of CryptoQuant.
Assuming that this trend persists, it could indicate that Bitcoin will continue facing less macro selling pressure.
This would bolster its outlook and potentially lead it to see significantly further upside in the days and weeks ahead.
Featured image from Unsplash. Pricing data courtesy of TradingView.