Bitcoin
Large Bitcoin Holders Just Moved 80,000 BTC; Analysts Grow Cautious
Cole Petersen | Oct 24, 2020 | 22:00
- Bitcoin is in the process of testing its 2020 highs again as bulls attempt to take the reins and guide it to see further upside
- It has been struggling to gain any serious near-term momentum due to the selling pressure at $13,200, but once broken, it could rally towards $14,000
- Despite its overt bullishness at the present moment, there are a few bearish signs that may indicate that a selloff is brewing
- One analyst is pointing to large holders moving 80,000 BTC as a potentially bearish sign
- He also notes that a few other indicators suggest that Bitcoin’s uptrend is growing overheated
Bitcoin and the aggregated crypto market have been caught in the throes of an intense bull trend throughout the past few days.
BTC has rallied from its consolidation range in the mid-$11,000 region up to highs of $13,200 set just a couple of days ago.
It is now retesting these highs, which could indicate that further upside is imminent in the near-term.
There are a few bearish signs arising, however, including some massive BTC transfers into exchanges as well as a few on-chain divergences that favor sellers.
One analyst is concluding that these signs suggest Bitcoin’s upswing is getting overheated.
Bitcoin Moves to Test 2020 Highs as Bulls Try to Spark Next Leg Higher
At the time of writing, Bitcoin is trading up just under 2% at its current price of $13,140. This is just $60 below its yearly highs of $13,200 set just a couple of days ago.
Although there is some resistance here, it is growing weaker with each visit that BTC makes to this level.
If it can break above it in the near-term, it will likely spark a massive buying frenzy that sends its price rocketing higher.
Analyst: These On-Chain Signs Spell Trouble for BTC’s Short-Term Trend
One trader recently observed a massive 80,000 Bitcoin movement, noting that it could be a somewhat bearish sign if it is indicative of an imminent inflow of selling pressure.
“I don’t really like that hodlers are moving 80k bitcoin,” he said while pointing to the below chart from Whale Map.
Image Courtesy of Byzantine General.
He also points to Bitcoin’s premiums entering the overbought territory, as well as a high ratio of whales entering exchanges as bear-favoring signs that could indicate this rally is overheated.
Featured image from Unsplash. BTCUSD pricing data from TradingView.
