The Psychology has been Selling pressure to keep Bitcoin less than $20k
The price of the bitcoin till last week was set to all-time high value of $19,920.53. But the old cryptocurrency has still been struggling to break to more than the $20000 level. The reason has still remained elusive which analysis and traders have explained. According to them, there are so many sell orders which are very close to the $20000 level since some bitcoin holders are afraid of the near term, sell-offs. That price level is the particular aspect since it has been roughly where the market was top in the late 2017 rally which saw bitcoin quadruple in the price within two months only for collapsing by almost 70% within the two months.
Many sellers are now coming up with offers that are close to the $20000 level. There is no doubt that it created a strong level of resistance too. According to Simen Chen who the executive director of trading and investment at crypto lender Bable finance added that people are now planning to sell at such a level depending on what actually happened during the 2017 bull market. Many even compared it to 2017 similarities which are of course not so easy to ignore especially at the speed at which the bitcoin actually set a new record price. The level of $20,000 is more like the warfare of the phycology for many people. It takes just some months for the bitcoin to get high from $14,000 and make another new record.
Besides, it has also been noted that the emotional element also plays an important role and has been reflected on the retail investor side since there are so many institutions who are in the buy the dip market. The fundamentals of the market are weighing on the bitcoin. As per the data made from the Crypto analytics site, the crypto quant highlights that major of the bitcoin holders or even whales are not withdrawing bitcoin from the exchange. The fall of the bitcoin outflow from the exchange shows the fewer bitcoin whales are withdrawing their bitcoin.
Crypto Business World
CBW - External Analyst