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Bitcoin and the entire cryptocurrency market have been facing some immense turbulence throughout 2020, with the first part of the year greatly favoring bulls. In contrast, the rest of the year primarily consisted of consolidation.
BTC has yet to establish any short-term momentum either, as the crypto’s price has been stuck between $10,200 and $11,200 for the past couple of weeks.
This stability has been somewhat surprising, as there have been multiple bearish technical developments that have done little to provide BTC with any downwards momentum.
One on-chain analyst is noting that this is the result of new investors pouring into BTC at an unprecedented rate, absorbing the heavy sell pressure coming from larger players within the market.
Bitcoin Remains Stable as It Trades Below $11,000
At the time of writing, Bitcoin is trading up marginally at its current price of $10,630. This marks only a marginal decline from where it was trading at earlier on in the week.
The cryptocurrency has generally been trading in the mid-$10,000 range for the past couple of weeks. Any attempt to break this range has been futile.
Where the asset trends next will likely depend on whether $10,200 or $11,200 are broken first, as these two levels have been established as its mid-term range boundaries.
On-Chain Analyst: New Investors Have Absorbed Selling Pressure from BTC Whales
The recent news surrounding BitMEX is the type of thing that would catalyze intense selloffs in the past, but somehow Bitcoin has avoided seeing any type of far-reaching price decline.
Willy Woo, a prominent on-chain analyst, believes that this is due to immense buying pressure from new investors who are entering the market. He said:
“Fundamental buy pressure from new HODLers is undeniable right now. But for short term traders, sell walling on derivative and spot exchanges shows whales are in price suppression mode. It may whipsaw randomly a bit, but the long game will win.”
If this is the case, then Bitcoin’s mid-term outlook is incredibly bright, and it may only be a matter of time before its price is able to ascend.
Featured image from Unsplash. Charts from TradingView.