Bitcoin has perceived fading momentum over the past couple of days, with the mid-$13,000 regions’ selling weight slowing its ascent as bulls struggle to maintain their recent strength.
The benchmark cryptocurrency recently surged to its yearly highs at over $13,300, but the selling pressure here was quite significant and stopped it from seeing any tremendous momentum.
It is now concentrating around $13,000, with bulls and bears both being unable to spark any short-term trend.
It is imperative to keep in mind that each brushoff within the mid-$13,000 regions hasn’t been too strong, with buyers rapidly absorbing the selling pressure. This is a bullish indication.
One analyst is now steering to a fundamental metric that indicates a severe upside could be imminent. He notes that exchange balances have been rapidly declining since March and that whales have yet to begin offloading their holdings.
Since some of the cryptocurrency’s largest holders are not interested in selling their holdings at these prices, this indicates that further upside could be imminent.
Bitcoin Struggles to Maintain Momentum as Resistance Holds Strong
At the time of this report, Bitcoin’s trading down just over 1% at its current price of $13,000.
BTC has been trading at this price level throughout the past few days. Bulls and bears have not taken control of its near-term trend, and the selling pressure it faces at just above where it is currently trading is significant.
The evidence that this resistance has not been able to spark any selloffs is promising but could indicate that bulls control its price action.
For this to be established, another impulse higher that breaks the imminent selling pressure it faces is required.
This Key Factor Implies that BTC is Astonishingly Bullish
There is one fundamental factor that suggests Bitcoin is highly bullish despite the recent inflows of selling pressure.
One analyst pointed to declining BTC exchange balances, noting that this shows that retail investors and whales alike aren’t interested in selling their BTC at the current price levels.
The coming few days should shine a light on whether bulls will translate this fundamental strength into the additional upside.