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All eyes are on Bitcoin as it brushes up against powerful downtrend resistance, while straddling the top of the current trading range the cryptocurrency has been locked in throughout all of 2019. While a number of crypto analysts and traders are anticipating a rally, a massive sell order has appeared that is currently keeping prices at bay.
However, should Bitcoin price break through the sell wall, it could provide the rocket fuel for the potentially rally to over $5,000 per BTC that analysts are calling for.
Massive $80M Sell Wall Keeps Bitcoin Price at Bay
Crypto holders with massively large amounts of assets or capital are affectionately called whales, for their ability to create massive price movements whenever they surface. Oftentimes, these whales place extremely large – often millions of dollars worth on order – orders called sell walls, with the goal of holding price to a certain area, or to prevent price momentum from breaching resistance.
$BTC There is now an $80 million wall above the price action once again. That is a hell of a wall and fuel to take us higher. This is not a guarantee that the price will go up but it is a guarantee that there are plenty of sellers to move the price up if there are enough buyers. pic.twitter.com/ozbTyjwSuy
— Bleeding Crypto (@Bleeding_Crypto) April 1, 2019
One such whale has placed an extremely large sell order – as much as $80 million dollars – over the current price action as a means to hold Bitcoin’s price at the current level a while longer. These “walls” are sometimes pulled once the whale’s satisfied their selling, or can be used as part of their strategy to spook buyers. Other times the walls are enough to change the direction of a trend, and cause a rally to fail.
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However, if this wall is eaten through by buyers, it could provide the rocket fuel Bitcoin needs to breach overhead resistance with gusto, and take the leading crypto into a new trading range, confirming the bear market bottom is behind us.
If Bitcoin Breaks the Wall, What’s Next?
Bitcoin has continued to inch ever closer to powerful overhead resistance both due to a combination of normal horizontal resistance and the downtrend resistance line stemming back from all-time high. Due to the convergence of important lines, the entire crypto market is watching and waiting for the king of crypto’s next major move.
A break of current resistance should fill the overhead volume gap and send Bitcoin to over $5,000, but only if buyers are able to eat through the massive sell wall.
Related Reading | Crypto Analyst: Do Or Die For Bitcoin As Downtrend Resistance Nears Closer
The last time Bitcoin approached the downtrend resistance line, was back in November of 2018. The last touch of the line resulted in a violent move downward to the current trading range, where Bitcoin set its current bear market low of $3,200.
Since then, Bitcoin has been ranging, while the world speculates if the bottom is indeed in or not. The next moves for Bitcoin could set the trend over the next six months or longer, depending on the move and how powerful it is. Another drop down could see Bitcoin trying for new lows, while a sharp move up could signal the bear market has concluded, which could spark a new bull run in the cryptocurrency market.
Featured Image from Shutterstock
