The latest Bitcoin news show that BTC is quite idle as it enters no man’s land. However, on-chain analytics suggest that there are a few Bitcoin sellers that are preventing a rally right now as they are holding their amounts of BTC.
A top analyst covered this in an analysis, noting that neither his bull nor bear case has been confirmed. Chances are that this consolidation will resolve upward. The new analysis also suggests that there is little on-chain resistance that is stopping BTC from rallying to new local highs and even beyond that.
Recent data from WhaleMap, which was shared by a crypto trader, shows that there is little on-chain resistance stopping a potential Bitcoin rally from the current levels. The trader referenced the chart (shown below) and wrote the following:
“To add to this…: This chart shows where bitcoins where accumulated at. What do you see? There are very few bag holders left. Meaning, there is little sell pressure left. The only real sell pressure now is people taking profits.”
Mike McGlone is the trader who started the discussion about how there are a few Bitcoin sellers who are preventing a potential rally. He also commented on how Bitcoin’s supply and demand dynamics suggest that prices are tilted to appreciate in the longer run. The analyst and crypto bull said the following on August 19th, referencing another chart of Bitcoin and its position with the Bollinger Bands:
“Something unexpected needs to happen for #Bitcoin’s price to stop doing what it’s been doing for most of the past decade: appreciating. Demand and adoption metrics remain favorable vs. the #crypto asset’s unique attribute of fixed supply.”
Bloomberg Intelligence Commodity Primer – Something unexpected needs to happen for #Bitcoin‘s price to stop doing what it’s been doing for most of the past decade: appreciating. Demand and adoption metrics remain favorable vs. the #crypto asset’s unique attribute of fixed supply. pic.twitter.com/E0wxubOlHF
— Mike McGlone (@mikemcglone11) August 19, 2020
According to McGlone, certain fundamental trends also suggest that Bitcoin bulls are in control. Fidelity Investments was in the news this week, filing paperwork with the US Securities and Exchange Commission (SEC) for a Bitcoin-focused fund. This fund is dubbed the “Wise Origin Bitcoin Index Fund” and will be soon offered to accredited members, as analysts say.
“The passively-managed, Bitcoin-only fund will be made available to qualified purchasers through family offices, registered investment advisers and other institutions, according to a person familiar with the matter. Fidelity Digital Assets will custody the fund, the person said. The minimum investment is $100,000,” according to Bloomberg.