Last week, Bitcoin was bearish after failing to break through $30000.The BTC whale has contributed to sustained selling pressure
- Last week, Bitcoin was bearish after failing to break through $30000.
- The BTC whale has contributed to sustained selling pressure.
- Join us, official account: Chen is bad, not bad
Bitcoin [BTC] recently attempted to break through $30000. However, after multiple retests of the same level, it has shown significant weakness, as evidenced by last week's bearish performance.
The failure to maintain above $30000 is an important observation as it supports an upward resistance line. The latter is part of the price increase pattern of Bitcoin since the beginning of the year.
We have previously considered the possibility of Bitcoin dropping to the $24000 price range, and it will retest its year to date support line. Fast forward to now, the possibility of supporting retesting is now even higher.
So far, Bitcoin's bearish performance in the first half of May has been as high as 13%. At the time of writing, it changed hands for $26929.
Source: TradeView
If Bitcoin maintains this speed in the next two weeks, the possibility of retesting the upward support line will be very high. The price level of $25000 is particularly interesting as it has shown resistance in multiple instances. In other words, the same price level represents an important support range.
Assess the widespread demand for Bitcoin
Whales have the greatest impact on prices, so observing their activities can give us some understanding of expectations. On chain data shows that the number of addresses with balances equal to or greater than 1000BTC has decreased in the past three days.
Source: Glassnode
The above observations indicate that as of the time of publication, whales are fueling selling pressure. This further confirms bearish expectations. Over the past five days, the on chain trading volume of Bitcoin has also significantly declined. Therefore, in the past four weeks, more BTC holders have been in a loss state.
It is now clear that market confidence has declined, leading to an outflow of liquidity. If the market maintains the same trend, then if whales continue to sell, there will be more selling pressure, especially from the retail sector.
Unpredictability is one of the main characteristics of the market. The current expectations mainly lean towards bearish positions. However, there may still be bullish surprises, but they must be supported by healthy whale holdings.
However, this remains to be observed, so as of the time of publication, market conditions continue to indicate that bulls are on the sidelines.
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