This Trend Suggests Bitcoin is Unbelievably Bullish Despite Recent Selloff
The selling pressure at this cost level was significant and came about swiftly, suggesting that it might be quite some time until we see a continuing move beyond $14,000.
Featured image from Unsplash.
- Bitcoin saw a powerful overnight selloff that caused its price to erase most of the gains incurred throughout the past couple of days
- This selloff came about at a crucial resistance level, with the selling pressure at $13,800 proving to be significant
- This is a historic level, as it is where BTC rallied to before facing a solid rejection in the summer of 2019
- The rejection was grave, but the cryptocurrency still has multiple factors working in its favor
- One analyst is pointing to a place premium as one such factor that could bolster BTC
Published at Wed, 28 October 2020 18:00:36 +0000
One such factor is a premium to purchase place Bitcoin versus futures contracts, implying that there is now a wave of institutional and retail interest driving requirement for place BTC.
Bitcoin Rejects at $13,800, Plunges to Key Support
While sharing his thoughts on Bitcoin’s current outlook, one analyst explained that a premium seen while looking towards place BTC indicates that there is enormous retail, corporate, and institutional requirement.
Whether it can find support around its current price should provide significant insight into its near-term outlook.
Despite this decline’s overt bearishness, there are still many factors which are functioning in bulls’ favor.
Charts from TradingView
Where the market trends in the upcoming few days should determine the long-term significance of the Bitcoin rejection. A sustained decline might be an extremely bearish sign.
“A higher spot price & higher place volume (relatively speaking) is deemed bullish as it means that the rally is based on actual buying instead of degenerates gambling on derivs.”
At the time of writing, Bitcoin is trading down just over 2% at its current price of $13,320. This is around the cost where it has been trading throughout the last few days, but it does indicate a serious decline from its everyday highs.
Analyst: Demand for Spot BTC a Bullish Sign
Source: BTCUSD on TradingView.
These highs were set yesterday afternoon when the crypto rallied as large as $13,800. The rejection was grave and immediately sparked a decline that led BTC down to its current price level.
It’s been a rough past few hours for Bitcoin and the aggregated crypto market, as the grade cryptocurrency saw a brutal selloff after its cost rallied as large as $13,800.
He deems this a highly bullish sign.