Bitcoin has been the best performing major cryptocurrency by far, with most large altcoins severely underperforming it throughout the past few days and weeks.
While many investors allocated serious capital to altcoins in hopes of smaller tokens being a higher beta play that outperform BTC, the benchmark cryptocurrency’s massive upswing has sucked all the oxygen out of the room.
Until its momentum stalls and investors rotate capital away from BTC and into altcoins, there’s a strong possibility that it will continue outperforming the aggregated cryptocurrency market.
One trader is now pointing to the lack of intense selling pressure that Bitcoin is now facing as its price rallies above $28,000 as a positive sign. This exhaustion amongst sellers seems to hint that it may be gearing up for another leg higher that sends it to fresh all-time highs.
While speaking about this, one prominent trader explained that he is watching for BTC to “send” higher in the coming hours. He specifically notes that the fact no sellers are showing up at the crypto’s highs seems to indicate that price discovery is about to continue.
This may place some short-term pressure on altcoins, as they typically struggle to rise in tandem with the benchmark cryptocurrency.
Bitcoin Rockets Past $28,000 as Bulls Target Fresh All-Time Highs
At the time of writing, Bitcoin is trading up just under 3% at its current price of $28,100. This is around where it faced some serious selling pressure throughout the past week.
A break above its $28,500 highs could result in a continuation of the price discovery that the cryptocurrency has been undergoing as of late.
These highs were visited overnight, but the selling pressure here was significant and caused it to see a rather intense short-term selloff.
Lack of Aggressive Selling Above $28,000 Points to Imminent Upside
One trader explained that the lack of aggressive selling above $28,000 bodes well for Bitcoin and may indicate that upside is imminent for the cryptocurrency.
“BTC looks like it wants to send. No sellers showing up at the highs. I’m not short anymore, nor ‘hedged’, seems like price discovery is about to continue…”
Image Courtesy of SalsaTekila. Source: BTCUSD on TradingView.
If Bitcoin does continue seeing price discovery in the near-term, it may be poised to visit the psychologically important $30,000 level, as this is where everyone expects there to be some resistance.
Featured image from Unsplash. Charts from TradingView.
by Cole Petersen on December 30, 2020 at 09:30PM
Comments
Post a Comment