- Bitcoin’s price has been fairly stagnant throughout the past few days, with its recent rejection at highs of $28,500 kicking off a short-term consolidation phase
- Where the crypto trends in the mid-term may depend largely on whether or not bulls can invalidate these highs as a potential “blow-off top”
- There has been speculation that the swiftness of the rally and rejection confirmed the bear-favoring pattern, but BTC’s resilience in the time since is a promising sign
- One on-chain analyst is now noting that where the market trends next will undoubtedly depend, at least partially on the exodus of so-called “bear whales”
- He notes that these large sellers are running out of steam, which could indicate that upside is imminent for the benchmark crypto
Bitcoin has been consolidating ever since it reached highs of $28,500. The strength seen at these highs caused the cryptocurrency to lose some serious momentum and drift lower.
Despite its recent decline, bulls have been building strong support within the $26,000 region, which is a positive sign for its mid-term outlook.
One analyst is now forecasting that a move higher is imminent, pointing to sell-side exhaustion amongst so-called “bear whales.”
The exodus of these sellers could open the gates for even further mid-term upside.
Bitcoin Gains Support Following Formation of Potential “Blow-Off Top”
At the time of writing, Bitcoin is trading up just under 4% at its current price of $27,200. This marks a notable rally from its recent lows of $26,000 that were set following the move to $28,500.
This did resemble a blow-off top, but the recovery from these lows is a promising sign that this pattern may be invalid.
Bulls must continue defending the mid-$26,000 region in the days ahead.
On-Chain Analyst: Whales are Running Out of Selling Pressure
One analyst explained in a recent tweet that data indicates whales who have been offloading their Bitcoin holdings are beginning to run out of selling pressure.
“BTC whales seem exhausted to sell. Fewer whales are depositing to exchanges. I think this bull-run will continue as institutional investors keep buying and Exchange Whale Ratio keeps below 85%.”
Image Courtesy of Ki Young Ju. Source: BTCUSD on TradingView.
The coming few days should shed some light on where the entire market is trending in the mid-term. The exodus of bearish whales does seem like a positive event, as it may alleviate some sell-side pressure that the crypto faces.
Featured image from Unsplash. Charts from TradingView.
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Author: Cole Petersen