• Bitcoin price has been trading between a range of $20,500 and $21,500 for the past few days.
• A massive outflow of nearly 20,000 BTC was recorded in the past 6 days as soon as the price rose above $21,000.
• This had almost killed the selling pressure in the market which would have raised the BTC price beyond $22,500 by now.
Bitcoin (BTC) has been trading in an accumulated range between $20,500 and $21,500 for the past few days. A major development in the market was recently observed when a massive amount of BTC left the exchanges at the same time which had to uplift the price close to $22,000. However, the price has yet again been facing acute bearish action and has been testing the crucial resistance at $21,000 multiple times without any success.
Recently, a well-known analyst discovered the exchange reserve balance of all spot exchanges and Binance specifically and released some of his observations. As soon as the Bitcoin price raised beyond $21,000, a huge outflow of nearly 20,000 BTC was recorded in the past 6 days. This had almost killed the selling pressure in the market which would have raised the BTC price beyond $22,500 by now.
Unfortunately, the bears suddenly jumped in and are attempting to dominate the rally. The main reason observed by the analyst is that most of the traders were expecting a further rise in the prices. However, the prices witnessed a sudden dip due to the high sell-off pressure in the market. This was followed by the outflow of the major portion of Bitcoin from the exchanges.
It is also believed that there is some level of distortion going on within the space. This is because even after the huge outflow of BTC, the price is still struggling around the same levels. This indicates that the traders are not optimistic about the further bullish momentum and have started to sell their holdings.
Overall, the Bitcoin market is currently in a state of confusion. Despite the huge outflow of Bitcoin, the prices are still struggling to move beyond the $21,000 mark. It is likely that the prices will continue to remain volatile until the market finds a clear direction.