Bears May Resist Bitcoin at $113K
Bitcoin returns to $113K but might not be there for very long because of intense selling pressure that has plagued it recently.
Quick overview
- Bitcoin (BTC) has surged to $113,601, showing a 0.70% increase in the last day and 1.84% over the week.
- Despite the recent upward momentum, selling pressure from bears and whales may hinder Bitcoin's ability to maintain its gains.
- The cryptocurrency is benefiting from high trade volume and market anticipation of an interest rate cut, but struggles to break the $120K barrier.
- Resistance levels between $113K and $115K could challenge Bitcoin's upward trajectory in the coming days.
Live BTC/USD Chart
Bitcoin (BTC) surged over the last 24 hours to return to $113,601 (BTC/USD), above its 7-day average, but we could see some pushback from the bears who have dominated this coin lately.
The selling pressure has eased off of Bitcoin for the moment, as it climbed 0.70% over the last day and $1.84% over the last week. This may seem like the beginning of a bullish trend, but we expect that to be unlikely at this point.
BTC/USDYes, Bitcoin is benefitting from upward momentum coming from the stock market as the market anticipates a new interest rate cut. However, Bitcoin has had a very difficult time breaking back through the $120K barrier and setting a new record high lately. Selling pressure has been intense, with even whales giving up on their Bitcoin assets in a big way, driving the price below $111K recently.
Bitcoin Spikes but for How Long?
On Wednesday, Bitcoin managed to break above $113K, a notable feat considering its recent performance. The coin is helped along by a trade volume of $44.94 billion over the last 24 hours as well as a market capitalization of $2.25 trillion. Even with the bears keeping Bitcoin down and Ethereum (ETH) sitting at record highs, this coin is no slouch on the financial markets.
However, the strong selling pressure that Bitcoin has suffered from in the last week is likely to rear its head again as the coin climbs. The whales who bought coins over the last six months and then sold off recently are not the only ones who are going to look at Bitcoin’s temporarily higher price as a signal to sell. We may see the coin pulled back down close to $110K over the next few days.
When Bitcoin takes more than a few weeks to hit a record high, the selling pressure escalates, and it has a tough time holding onto its gains. We will likely see a repeat of that behavior this week, especially if the PPI and CPI inflation reports in the next couple of days are not very positive, which we do not expect them to be. There is plenty of resistance between $113K and $115K for now, and if Bitcoin can push past that, then it could retain its gains for a while.
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