Bitcoin, the star cryptocurrency, has been maintaining its price action above $20K for more than a week now. Just before the King currency captured this key level, the currency was subdued by strong bearish action. However, Bitcoin’s positive movements have revived hope for the entire crypto space and several assets have regained their key levels.
At the time of publication, Bitcoin is valued at $20,632 with a rise of 1.42% over the last 24hrs. This rise in its price action is strongly pointing toward decreased selling pressure.
Glassnode, an analytic firm, claims that the decrease in Bitcoin’s selling pressure has dropped towards lows that were last seen in 2018. As per the report, selling pressure drops when unrealized losses increase and volatility decreases.
This drop in selling pressure is a strong reason to believe that the ongoing bullish momentum is likely to continue for longer. On the other hand, the Bitcoin exchange inflow has surged since November 2nd after the matric was on toward the lower side in the last four days.
However, the Bitcoin exchange outflow has plunged since the beginning of November which further indicates reduced selling pressure.
Bitcoin Bulls Emerge Victorious
Bitcoin is experiencing a setback in terms of demand in the derivative market. This is because Bitcoin Futures’ perpetual funding rate has been rapidly fluctuating with no clarity.
In addition, the Bitcoin trading activity had maintained a significant level since the start of November, but now the activity has dropped. This points towards decreasing selling and receiving addresses.
If history is likely to repeat itself, the drop in selling pressure shall push Bitcoin beyond $20,000 soon. However, if the selling pressure increases then the bulls may falter and the bears will regain dominance, potentially losing a grip over the crucial level.
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Source: https://coinpedia.org/bitcoin/selling-pressure-drops-are-we-on-the-brink-of-a-strong-bitcoin-bull-run-soon/