Bitcoin’s multi-week consolidation phase comes close on the heels of the strong uptrend that the cryptocurrency was able to post late last month.
Despite its macro outlook remaining incredibly strong, it appears that Bitcoin’s short-term outlook is being impeded by the heavy resistance at $12,000.
Buyers attempted to shatter this level yesterday, although the selling pressure here proved to be too significant.
It is important to note that yesterday’s bid at this level did not catalyze any sharp pullback or rejection, signaling that buyers are building up strength.
Another factor that could bode well for BTC as it nears its crucial near-term resistance is that whales have been heavily accumulating the benchmark cryptocurrency over the past few weeks, apparently not being concerned about its stalling momentum.
Periods of intense whale accumulation aren’t always directly followed by any type of breakout rally, but they do bode well for the asset’s mid-term outlook.
Bitcoin Trades Beneath Key Resistance as Bulls and Bears Reach an ImpasseÂ
At the time of writing, Bitcoin is trading up marginally at its current price of $11,900.
Yesterday, bulls did make a bid at breaking $12,000, but the selling pressure here once again proved to be insurmountable.
That being said – unlike the rejection seen last Saturday – the cryptocurrency has been able to maintain its stability in the time following this rejection. This is a sign that bulls are building strength.
Some investors have speculated that Ethereum’s strength will be enough to guide the cryptocurrency higher – as ETH recently posted a breakout rally that allowed it to climb from lows of $370 to highs of $450.
For the time being, one analyst is expecting Bitcoin’s bout of range-bound trading to extend further. He does note that its range may narrow due to new support around $11,650.
“Bitcoin: The lower timeframe we’ve reached both of the TP’s (first one $11,750, second one $12,000). Support levels lower timeframes; $11,650 and $11,400-11,500. Overall suspecting continuation of the ranging.”
Image Courtesy of Crypto Michael. Chart via TradingView.
Whales Still Accumulating BTC Despite Stalling MomentumÂ
Bitcoin’s inability to break above $12,000 has not been enough to stop the cryptocurrency’s wealthiest investors from adding to their positions.
One analyst spoke about this trend in a recent tweet, referencing a map of unspent Bitcoin while explaining that there is still a strong accumulation trend amongst whales despite BTC’s price being relatively high.
“Whales are still accumulating at these prices,” he said.
Image Courtesy of Byzantine General.
It remains unclear as to whether or not this trend will create a tailwind for Bitcoin, but it is a positive development nonetheless.
Featured image from Unsplash. Charts and pricing data from TradingView.
