Bitcoin was unable to overcome key resistance levels at around $23,000. As a result, the cryptocurrency has moved sideways over the past two days while preserving some of its gains over the past week.
The slowing bullish momentum coincides with an increase in liquidity of requests (sell orders) for the price of BTC above its current levels and an increase in supply flows of BTC on crypto exchanges. . In short periods, there are over $70 million sell orders for Bitcoin from $23,000 to $24,000.
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These levels look set to continue functioning as resistance as Bitcoin price continues to push higher. BTC price hit the immediate zone at $23,100, but Material Indicators data records $18 million in sell orders at this level alone.
As seen below, the price of BTC is seeing less liquidity below its current levels with large liquidity gaps at key levels. This could portend heavy downside volatility if BTC continues to lose momentum and cannot break above $24,000 in the near term.
Additionally, Material Indicators records increased selling pressure from investors with sell orders above $100,000. These investors have been accumulating BTC over the past week, exerting a big influence on price action.
As shown in the chart below, these investors (shown in purple below) have started selling into the current price action. In these timeframes, it seems too early to conclude if this trend will continue and if it will have a negative impact on the price of BTC.
Analyst Ali Martinez Okay with the data given above. Via Twitter, Martinez showed data on peak selling pressure from whales and BTC miners with a drop in the number of addresses with over 1,000 BTC and a 1% drop in Bitcoin held by addresses associated with BTC miners. minors.
Supply of bitcoins on exchanges increases, hints of further weakness?
Other data provided by Ali Martinez records an increase in Bitcoin held by crypto exchanges. This metric is considered bearish because these BTCs are often unloaded in the market.
Since July 12, the analyst said, there has been a spike of 27,000 BTC or $621 million sent to these sites. Martinez commented the following on these measures:
The increase in open interest combined with a decline in network growth and mounting selling pressure from whales and miners suggests that Bitcoin’s recent price action is driven by leverage. This network dynamic increases the likelihood of a strong correction.