- Bitcoin has faced tremendous selling pressure in recent days and weeks, with buyers losing their edge in the market as sellers focus on further downside
- This weakness caused the crypto to drop all the way to $ 30,000 this morning before it could find serious support
- There is a high probability that it will start to bottom out in the short term as this sale has overheated a lot
- One trader notes that BTC’s finding support despite the intense nature of spot sales is a positive sign.
- It suggests the crypto asset is offered elsewhere, with derivatives and possibly TWAP purchases on larger player exchanges
Bitcoin and the entire cryptocurrency market are seeing one of the first massive downturns during this uptrend.
This kind of sale was always inevitable, like BTC usually faces multiple 20% + corrections during the parabolic up trend.
If history rhymes, this downturn will be followed by intense buying pressure that could cause it to skyrocket in the medium term.
A trader now notes that the spot market has caused these sell-offs, with the pressure on the markets on the sell side being quite significant.
He notes that the fact that it has nevertheless found support is impressive and suggests that it has serious pressure on the buy side elsewhere.
Bitcoin is struggling to gain momentum as selling pressure mounts
At the time of writing, Bitcoin is trade in just over 12% at the current price of $ 33,500. This marks a remarkable rebound from the morning low of $ 30,000 set a few hours ago.
The recovery from these lows has been promising so far, but bulls need to maintain their upward momentum for this to be a real turnaround.
BTC is finding strong buy-side support despite selling on the spot market
This sell-off appears to have been mainly driven by the spot market, with sell orders on exchanges such as Coinbase putting enormous pressure on Bitcoin.
A merchant explained that there must be some major buy-side support somewhere – possibly derivatives or TWAP purchases – that has countered this and allowed the lower-priced $ 30,000 region to act as support.
“There is a bullish argument here, however, as the spot sold very aggressively, but no new low-low was made. So something is absorbing this sale. “
Image Courtesy of Byzantine General.
Unless Bitcoin crushes its $ 30,000 support, it looks like this will prove to be a strong foundation it can grow on in the days and weeks ahead.
Featured image from Unsplash. Price data from TradingView.