Bitcoin has been struggling to gain momentum for the past few days, and sellers are building massive resistance around $ 40,000.

 

Bitcoin unable to break $ 40,000 is looking for direction

The coin recovered strongly from its $ 30,000 low set last week, but it remains unclear whether the V-shaped recovery seen since is sufficient to trigger a new wave of growth.

An on-chain analyst notes that despite technical uncertainty, Bitcoin is basically on the rise. Pointing to a steady increase in Bitcoin storage addresses, the analyst points out that this indicates that continuous growth is imminent.

Bitcoin is currently trading at $ 37,120, up over 5 percent. This marks a notable drop from the $ 40,000 high touched yesterday.

Accumulation addresses are remarkable

The selling pressure here cannot be overcome for the time being and any decline could pose a serious risk to the entire market.

Another uptrend currently supporting the growth of Bitcoin is a rapidly growing accumulation model among retail investors.

This can be explained by the number of so-called “backlog addresses” currently found in crypto containing 2.7 million dormant BTC.

If this pattern continues, it could continue to give Bitcoin a low power that ultimately allows it to see significantly more bullish in the long run.

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