Bitcoin is about to re-test its 2020 highs, while the bulls try to take the reins and lead the asset to further success.
The selling pressure at $13,200 has made it difficult to gain any serious momentum in the near future, but once broken it could move towards $14,000.
Despite the obvious bullishness at the moment, there are some bearish signs that a sell-off is imminent.
One analyst suggests that it could be a potentially bearish sign that large holders are moving 80,000 BTC.
He also notes that some other indicators also suggest that Bitcoin’s upward trend is increasingly overheated.
Bitcoin and the aggregated crypto market have Profit Secret been affected by an intense bull trend in recent days.
BTC has recovered from its consolidation range in the mid $11,000 range to highs of $13,200, which were set just a few days ago.
BTC is now testing these highs again, which could indicate that further rallies are imminent in the near future.
There are, however, some signs of declines, including massive BTC transfers to the exchanges and some divergences in the chain, which favour sellers.
One analyst concludes that these signs suggest that the recovery of Bitcoin is overheating.
Bitcoin is moving towards testing the highs of 2020
At the time of writing, Bitcoin is traded at the price of US$13,005. Although there is some resistance here, it weakens at this level with each visit by BTC.
If the Coin is able to go beyond this level in the near future, it is likely to trigger a massive buying frenzy that will push its price up.
Analyst: These factors cause problems for the short-term BTC trend
One trader has recently observed a massive movement of 80,000 Bitcoins, noting that this could be a somewhat bearish sign, as it may indicate an imminent influx of selling pressure. The trader with reference to the Whale Map chart below:
„I don’t really like the fact that Hodler is moving 80,000 Bitcoins
Picture courtesy of the Byzantine General.
He also points out, as bear-friendly signs that this rally may have overheated, the Bitcoin premiums entering the over-bought territory and a high proportion of whales entering trading.