Bitcoin was hovering around the $50k level yesterday, which shows that the battle to take control of proceedings has intensified. The largest digital currency by market capitalization had a very slow Christmas overall and the bulls largely stuck to defending the $50k price level. The bears managed to pull the index to the $49ks earlier but the bulls hustled and got it back up again. However, the recovery itself was very unassuming and at press time, it is hovering right around the key level.
While Bitcoin’s rise above $50k wasn’t considerably high to begin with, the bulls are now struggling to keep these gains. The cryptocurrency did rise above $51k in the buildup to Christmas and got up to as high as $51.6k at one point but that was about it. The ensuing resistance below $52k meant that the bulls just weren’t ready to take the next step.
Now, the bears are dogging their footsteps and are in the lookout to make a move of their own.
While the bearish bias was never really gone, it is surprising to see the amount of control they have over the market as they didn’t even let the bulls make any move. However, there might be a reason behind this as cryptocurrency exchange Binance saw sizeable inflows from a big whale player who was reportedly selling some of their crypto on the exchange right around the $50k level. This probably kept the bulls in check for much of the day. While wallet analytics can usually pinpoint the new player’s origins and previous history, in this case there was not much to report as it was a new player interacting with the market.
This is a short-term trend on major exchanges that has resulted in the exchanges seeing a net influx since the last 3-4 days. Overall exchange balances have increased from around 1.69 million BTC to around 1.75 million BTC, according to on-chain analytics website CoinGlass.
However, the overall level of interference from this whale alone is quite minimal and isn’t resulting in big liquidations that can sway the entire market and the price levels have reflected that. However, there is an air of caution around the crypto market for sure as whales sometimes fall like dominoes. If ones sells, others follow as well. The cryptocurrency is still in a bearish short-term price squeeze at the moment and it will continue to be in this territory
Image Source: pixabay.com
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