Bitcoin has been caught within the throes of a macro uptrend since March, despite the cryptocurrency facing immense selling pressure over the past month that has led it down from highs of $12,400.
As of late, the crypto has been witnessing multiple ongoing events that have created some turbulence, although bulls have been stopping it from seeing any significant downside.
BTC’s stability in the face of multiple bear-favoring developments is a positive sign, suggesting that upside could be imminent in the future.
Despite the stalling uptrend, one analyst is noting that Bitcoin is still caught within the same bull trend that first began when it posted a “v-shaped” recovery at its lows of $3,800.
He believes that one specific factor has been “camouflaging” the cryptocurrency’s technical strength, but this may no longer be a suppressing factor for Bitcoin going forward.
Bitcoin Consolidates as Bulls and Bears Remain Deadlocked
At the time of writing, Bitcoin is trading up marginally at its current price of $10,600. This marks a notable upswing from its recent lows of under $10,400 that were set as a result of fear surrounding the CFTC’s charges against the BitMEX co-founders.
Once news broke regarding these charges, Bitcoin’s price saw a massive decline that sent it from over $10,900 to lows of $10,400.
In the time since, its price has been trading higher, with the fairly limited reach of this selloff pointing to significant strength.
Many analysts have noted that news like this would have created a significant selloff in previous years. The asset’s tempered response to this news points to a maturing market.
Here’s What has Been Stopping BTC from Extending Its Bull Trend
Willy Woo – a prominent on-chain analyst – explained in a recent tweet that BitMEX traders have been stopping Bitcoin’s uptrend from flourishing due to the wild price swings they create.
“Capitulation happened last year at $3k, we’ve been in a bull market ever since, it’s just been camouflaged by BitMEX traders with the wild swings they create. $4k->$14k was the mother of all squeezes, retracing back to organic valuation took a while.”
Now that BitMEX – and margin trading platforms in general – are seeing a mass exodus of users who fear a regulatory crackdown, this may no longer be a factor that hampers the crypto market’s growth.
Featured image from Unsplash. Pricing data from TradingView.
