Bitcoin has been consolidating since it hit $ 28,500. The resistance seen at these levels caused the cryptocurrency to lose momentum and regress a little.
Support at $ 26,000 is strong
Despite its recent decline, the bulls are forming a strong support in the $ 26,000 zone, which is a positive sign for the medium-term outlook.
One analyst predicts that a higher move is imminent, stating that he is seeing exhaustion on the selling side among investors he calls “bear whales.” The exhaustion of the sellers may open the doors further in the medium term.
For Bitcoin, the situation seems pretty intimate
Bitcoin is currently trading up just under 4% at its price of $ 27,200. This shows a significant rally from the $ 26,000 bottom level determined after the transition to $ 28,500.
We may be in a model called “blowing top”, but the recovery from bottom levels is interpreted as a hopeful sign that this pattern may be invalid.
The bulls should continue to defend the area mid-$ 26,000 in the coming days.
An analyst explained in a recent tweet that the data showed that the selling pressure of whales who were dumping Bitcoin assets was starting to end.
$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%.
— Ki Young Ju 주기영 (@ki_young_ju) December 28, 2020
The next few days may shed some light on where the whole market is heading in the medium term. The bear whales migration seems like a positive event as it can ease the sell-side pressure facing the cryptocurrency.