Your favorite crypto news blog

There’s a $30 Million Bitcoin Sell Wall That May Halt Any Rally Past $10k

Bitcoin 2020/05/09 02:00 by Nick Chong
The price action over the past few days has undoubtedly been positive for Bitcoin. After building momentum for weeks, the cryptocurrency finally burst past $10,000 this week, hitting a $10,100 high. Since this initial breach, BTC has slowed. The cryptocurrency has traded within a percentage point of $10,000 for the last 12 hours, barely deviating as bulls and bears clash. Some say this consolidation is indicative of an impending breach to the upside, yet there’s a rapidly growing sell wall above $10,000. This would indicate that Bitcoin moving higher from here will be very difficult. Related Reading: Bitcoin Whales Have Been Buying En-Masse Since Early-2020: “Macro Bullish” Sign There’s a Sell Wall Brewing Above Bitcoin According to Nik Yaremchuk, a former analyst at crypto fund Adaptive Capital, there’s massive selling pressure building above the Bitcoin price. Pointing to order book data from Bitfinex, he noted that there is approximately 3,000 BTC ($30 million) worth of sell-side positions from the current price of $10,010 until $10,230. Should BTC fail to catch a bid during any really in the coming hours, it could be strongly rejected by the sell wall. The wall will act as resistance for the cryptocurrency market as long as it is on the order book. Chart from Nik Yaremchuk Another trader indicated that on OKEx, there was a similar sell wall of approximately 1,000 BTC until $10,200. This suggests that the abovementioned wall is not a spoof, but rather serious selling pressure from big market players. This isn’t the only bearish sign. Per previous reports from NewsBTC, a top analyst noted that on Bitcoin’s two-day chart, the Tom Demark Sequential (TD Sequential) printed a “9.” This was last seen at the peak of the Q1 2020 bull run at $10,500. What followed was a steep decline of over 60% towards $3,700. “9” TD Sequential candles are often seen at reversal points in markets, as evidenced in the chart below. Chart from @Moe_Mentum_ Can Bulls Break Through? Although there is this building sell wall, investors are betting on the chances cryptocurrency will eventually break through. Citing data from Glassnode, Willy Woo on May 5th noted that the population of large Bitcoin holders (1,000+ coins) has increased strongly since January’s lows. This indicates these users have been in “solid accumulation mode,” which is a “macro bullish” trend: “Whale population spotted increasing in the wild. They’ve been in solid accumulation mode since January unperturbed by the COVID crash. This is macro bullish,” Woo said in reference to the chart below. Their optimism is seemingly related to Bitcoin’s ongoing surge in fundamental strength. Just yesterday, Paul Tudor Jones, a billionaire macro investor, revealed that his fund will be buying Bitcoin. Jones explained that from how he sees it, the top cryptocurrency in the ongoing macroeconomic backdrop is eerily reminiscent of gold in the 1970s. The investor added that while he subjectively sees Bitcoin as the worst store of value amongst fiat, gold, and financial assets, he sees the cryptocurrency as the “fastest horse in the race.” Photo by Erwan Hesry on Unsplash

0 Like(s)

You should also read...

Bitcoin 07/05/20 13:00 by Nick Chong
Why Analyst That Called Bitcoin’s $3,200 Bottom Expects a “Face-Melting” Move
After a multi-day consolidation around $9,000, Bitcoin is finally breaking out again. Thursday morning saw the cryptocurrency hit $9,400, revisiting the highs of last week as bulls step in. While the ...
Read More
Bitcoin 08/05/20 01:28 by Nick Chong
Bitcoin Just Surged to $10,000: Here’s What Analysts Think Comes Next
Just hours after our last market update, Bitcoin has topped $10,000. This is the first time the cryptocurrency has done this in over seven weeks. After holding $9,400 for all of Wednesday, the cryptoc...
Read More
Bitcoin 05/06/20 02:00 by Nick Chong
Bitcoin Rallied 300% Last Time This Signal Appeared. It Just Happened Again
After rallying as high as $10,400 earlier this week, Bitcoin plunged by nearly $2,000 in 24 hours on BitMEX. It was a move that liquidated over one hundred million worth of derivatives positions. Anal...
Read More
Bitcoin 05/09/20 06:40 by Nick Chong
This Simple Chart Shows Why Bitcoin Remains Bullish on a Macro Scale
Bitcoin has sustained a strong drop over the past few days as legacy markets have undergone a strong correction after a record rally. The leading cryptocurrency traded around $9,800 on Friday morning ...
Read More
Bitcoin 04/01/21 12:30 by Yashu Gola
Over $1.17B of Bitcoin Longs Liquidated as Price Slumps Below $30K; What’s Next?
Bitcoin derivatives traders who opened bullish positions as the cryptocurrency reached its record high, near $34,500, are now staring at massive losses. Data provided by ByBt.com shows that the BTC/US...
Read More