According to Cole Garner, a popular network analyst, there is a wall of 2,800 BTC sales on Binance. Since Bitcoin (BTC) is currently trading at $ 10,700, this equates to a $ 30 million sell order block on just one exchange.
While this does not necessarily mean that a market downturn is imminent, it does suggest that a significant rally is still unlikely. In the short term, BTC is likely to face a low volatility range between $ 10,500 and $ 11,000, which are the two main support and resistance levels.
Maximum Pain Scenario for Bitcoin and Most Popular Cryptocurrency Underway
Over the past two years, Bitcoin has had negative Q4 net income. Some attribute this to periodic movements, others argue that this is a purely random phenomenon.
As Bitcoin approaches the fourth quarter, there are several general risks that could reduce momentum. These factors include a controversial presidential election, the economic downturn caused by the pandemic, and struggles in the US stock market.
Aside from the negative fundamentals that could push Bitcoin, technical indicators show that the likelihood of a breach remains low.
For example, the huge wall of selling on Binance is one of the many technical reasons indicating that higher volatility is unlikely, and may be the reason Bitcoin’s price can’t break through the $ 11,000 resistance level.
Some of the positives are that Bitcoin also aggressively defended the $ 10,500 support level last week, the digital asset’s technical structure and feel are not bearish. Instead, it is neutral and indicates an accumulation phase.
Based on recent bitcoin price changes and Binance’s large selling wall, Garner stressed that re-accumulation could occur. He said:
“Binance with 2800 BTC is on sale for 11 thousand dollars. An irresistible force meets a solid body. Welcome to regroup. ”
While technical factors could cause BTC to trade sideways between $ 10,500 and $ 11,000, industry leaders say Bitcoin’s fundamentals are very positive.
Glassnode CTO Rafael Schultz Kraft said Bitcoin has “huge room for growth.”
He quoted the market value of the Thermocap ratio and showed that Bitcoin is still far from the top, Schultz-Kraft notes:
“The ratio of market value to Thermocap ratio indicates that #Bitcoin has tremendous growth potential. It hasn’t even started to show the dramatic growth typical of the beef markets. The current levels are an integer value from the previous peaks of the BTC dollar. “