Bitcoin suffered another bearish hurdle even after snapping north of $40,000 on the 6th of February. After a decline of over 2% in the last 24-hours, the crypto-asset’s price settled at near $38,000.
This was due to the rising sell-pressure in the market which saw participants offloading their coins as it hit a crucial price ceiling.
A pseudonymous Bitcoin researcher and analyst called ‘Material Scientist’ had speculated that ‘mega whale’ order flow climbed an all-time high on the 29th of Jan, which was indicative of an imminent selling pressure.
He had previously tweeted,
“Whales bought back almost everything they had sold since $40k, and mega-whales are about to make a new ATH on their orderflow. Downtrend is over, IMO. New ATH soon, don’t miss it!”
This indicated that if Bitcoin manages to form a firm support region at $40,000 it would potentially transpire a highly positive short-term price trend for BTC.
If further signifies that the crypto-asset BTC can possibly rise towards its recently established all-time high without a substantial selling pressure originating from major whales and high-net-worth investors.
Besides, the macro outlook for Bitcoin continued to be bullish. This can very well be attributed to the phenomenon which has a weakening effect on BTC’s selling pressure in the market. In short, if a phenomenon that has a weakening effect on BTC’s selling pressure in the market. In short, if a supply-side crisis emerges, there will be a sustained rise of illiquid bitcoins which suggests a strong investor hodling sentiment and a potentially bullish signal crisis emerges, there will be a sustained rise of illiquid bitcoins which suggests a strong investor hodling sentiment and a potentially bullish signal.
Bitcoin exchange flows from centralized exchanges have hit an all time low. One of the most important reason for the decreasing values was the massive inflows of capital is large over-the-counter [OTC] trading volumes which has painted a bullish picture for the world’s largest digital asset.
While, on the surface, it may seem like the DeFi craze has cooled down but that is far from the actuality, Tokenized Bitcoin, for instance, continues to the pave the way for adoption. Bitcoin tokenization has been long touted as a potential catalyst for further growth in decentralized financial markets and the rising figures for BTC locked in Wrapped Bitcoin [WBTC] as a testament to its growing popularity.
The channeling of tokenized BTC in DeFi is yet another reason of the declining figures on CEXs..