Bitcoin has come a long way from where it was just under one year ago, with the March 12th selloff sending the cryptocurrency to lows of $3,800 – from which point it has seen exponential upside growth.
One analyst is now noting that BTC’s days seeing sharp selloff events like this one are over, with its underlying market structure maturing at a rapid pace throughout the past several months.
The recent exodus away from BitMEX may be contributing to its stability, as the market is now being primarily driven by spot trading volume rather than margin volume.
There’s an on-chain metric that further bolsters this notion, with the Exchange Whale Ratio remaining incredibly low throughout the course of BTC’s parabolic uptrend.
This indicates that large investors have little interest in offloading their holdings, despite Bitcoin’s price currently trading just 10% below its all-time highs.
So long as large sellers don’t step up and start placing pressure on the crypto, it may be well-positioned to see significantly further upwards momentum in the days and weeks ahead.
Bitcoin Stabilizes Below $18,000 Despite Recent Selloff
At the time of writing, Bitcoin is trading up just over 1% at its current price of $17,900. This marks a massive rise from daily lows of $17,400, but a notable decline from highs of $18,600.
Despite the $1,000+ selloff seen when BTC tapped highs of $18,600 late last night, the cryptocurrency has stabilized ever since and is now trying to break back above $18,000.
Where the entire market trends in the near-term will depend largely on whether or not BTC can gain a firm foothold above this crucial level.
On-Chain Data Suggests BTC Won’t See Any Mass-Selloff Events
The CEO of CryptoQuant – an on-chain analytics firm – explained in a recent tweet that he does not believe Bitcoin will see any more mass-selloff events going forward.
He contends that the cryptocurrency’s Exchange Whale Ratio is still incredibly low, signaling that large investors are not selling into this rally.
“Dear BTC shorters, You can call me a moon boy, but unfortunately, there won’t be a mass-dumping like March this year. Exchange Whale Ratio (90-day MA) is still very low. Long-term bullish is inevitable.”
Image Courtesy of Ki Young Ju. Chart via CryptoQuant.
Unless so-called “whales” try to front-run Bitcoin’s all-time highs and sell around $19,000, there’s a strong possibility that the cryptocurrency will break above this price and enter price discovery mode.
Featured image from Unsplash. BTCUSD pricing data from TradingView.
