Bitcoin (BTC) has been plagued with mixed signals for a good deal of time now. Although it has been slowly climbing higher, the lower-$11,000 area appears to be a very aggressive resistance zone.
The intensity of selling pressure it garners in this area indicates that bulls may not be dominating as once believed. This could mean that BTC could be on the brink of another major decline.
However, despite the lingering weakness, the current holdings of whales paint a different picture for the near-term possibility of the benchmark cryptocurrency.
Recent data from a crypto analytics firm, CryptoQuant, shows that whales are firmly holding on to their positions despite several rejections from the $11k level. The CEO of the firm made this announcement via Twitter, explaining that the Exchange Whale Ratio has now reached a fresh yearly low, keeping in mind that lower whale selling bolsters Bitcoin.
If this trend continues, it could indicate that there would be less macro selling pressure, which could help its bullish prospects in the coming days and weeks.
BTCUSD – 4-Hour Chart
Key BTC Levels to Watch
At press time, Bitcoin is trading lower around $10,860. It has been trading in a tight range between $11,050 and $10,700 for about three sessions now. As mentioned earlier, bulls have failed multiple times to clear the $11k resistance despite backing by whales. Every attempt has been met with strong selling pressure, which drives the price lower.
Meanwhile, bulls have likewise kept Bitcoin from falling below $10,800. However, a fall below that level will likely be supported strongly by the confluence of indicators below (ascending trendline and 50 SMA) at $10,600.
Total market capital: $350 billion
Bitcoin market capital: $201 billion
Bitcoin dominance: 57.4%
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