The price of Bitcoin is in US$ 10,5 thousand, but a sales wall of US$ 30 millions hovers over it
A sales wall of 2,800 BTC at Binance increases the chance of settlement and is keeping the price of Bitcoin below $11,000.
According to Cole Garner, a respected network analyst, there is a sales wall of 2,800 BTC at Binance. With the price of Bitcoin Aussie System currently trading at $10,700, this is equivalent to a lot of sales orders worth $30 million in just one crypt brokerage house.
Bitcoin’s future premium lag shows that BitMEX is losing investor confidence
While this does not necessarily indicate that a retreat across the market is imminent, it suggests that a major recovery remains unlikely. In the short term, BTC probably faces a low volatility range between $10,500 and $11,000, two main levels of support and resistance.
BTC/USD chart showing at 2,800 sell wall at Binance
BTC/USD chart showing a sales wall of 2,800 at Binance. Source: Cole Garner, TradingLite
The maximum pain scenario for Bitcoin and the main cryptomaps is happening
In the last two years, Bitcoin registered negative net returns in the fourth quarter. Some attribute this to cyclical movements, while others suggest that it is mere coincidence.
As Bitcoin moves into the fourth quarter, there are several macro risks that may slow its momentum. These factors include a highly controversial presidential election, an economic downturn induced by a pandemic, and the difficulties of action in the US.
In addition to the negative fundamentals that may apply pressure on the BTC, technicians suggest that the probability of a high remains low.
For example, the huge sales barrier at Binance is one of many technical reasons why a spike in volatility is unlikely and possibly the reason why the price of Bitcoin was unable to exceed the $11,000 resistance level.
Some positive points are: Bitcoin also vigorously defended the $10,500 support level last week and the technical structure and digital asset sentiment are not pessimistic. Instead, they are neutral and point to a phase of accumulation.
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Based on the recent Bitcoin price trend and Binance’s large sales wall, Garner emphasized that a reacumulation may occur. He said:
„Binance with a 2800 BTC sales wall for US$ 11k. An unstoppable force finds immovable object. Welcome to reaccumulation. ”
While technical factors can cause BTC to fluctuate between $10,500 and $11,000, industry executives say the fundamentals of Bitcoin remain extremely positive.
Rafael Schultze-Kraft, Glassnode’s technical director, said Bitcoin has „a huge room to grow.
Bitcoin Market Cap to Thermocap Ratio
Bitcoin Thermocap Index and market capitalization. Source: Glassnode
He cited the Thermocap Index in relation to market capitalization, which shows that BTC is not even close to reaching its maximum. Schultze-Kraft noted:
„The Thermocap Index in relation to market capitalization suggests that Bitcoin has plenty of room to grow from here. It hasn’t even begun to show the strong increase typical of bullish markets. Current levels are in an order of magnitude far removed from previous BTC highs. ”