Bitcoin has been by far the best performing major cryptocurrency, with most of the major altcoins severely underperforming in recent days and weeks.
While many investors have seriously allocated capital to altcoins in the hope that smaller tokens will be higher beta versions outperforming BTC, the massive revival of the benchmark cryptocurrency has sucked all the oxygen out of the room.
Until momentum comes to a halt and investors turn capital away from BTC to altcoins, there is a good chance it will continue to outperform the aggregated cryptocurrency market.
A trader is now pointing out the lack of intense selling pressure that Bitcoin is now facing as the price moves above USD 28,000 as a positive sign. This seller exhaustion seems to indicate that it is gearing up for another leg higher that sends it to new all-time highs.
While talking about this, a prominent merchant explained that he is looking out BTC to “send” higher in the next few hours. He specifically notes that the fact that no sellers are appearing at the cryptocurrency highs seems to indicate that the price discovery is about to continue.
This can put some pressure on altcoins in the short term as they typically struggle to move up along with the benchmark cryptocurrency.
Bitcoin Rockets past $ 28,000 as Bulls target new all-time highs
At the moment of writing, Bitcoin is trading just under 3% at the current price of $ 28,100. This is pretty much where it has faced serious sales pressure for the past week.
A break above the $ 28,500 highs could result in a continuation of the price discovery that the cryptocurrency has been undergoing lately.
These highs were visited overnight, but the selling pressure here was significant and resulted in a fairly intense short-term sell-off.
Lack of aggressive selling of more than $ 28,000 points to impending upward force
A merchant explained that the lack of aggressive sales above $ 28,000 bodes well for Bitcoin and could indicate that the upward movement is imminent for the cryptocurrency.
“BTC looks like it wants to send. No sellers showing up at the highlights. I am no longer short, nor ‘hedged’, it looks like price discovery is about to continue … “
Image Courtesy of SalsaTekila. Source: BTCUSD on TradingView.
If Bitcoin continues to see price discovery in the near term, it could be poised to hit the psychologically significant USD 30,000 level as this is where everyone expects it to be some resistance.
Featured image from Unsplash. Charts from TradingView.