It has been a rough past few hours for Bitcoin and the aggregated crypto market, as the benchmark cryptocurrency saw a harsh selloff after its price rallied as high as $13,800.
The selling pressure at this price level was significant and came about swiftly, suggesting that it may be quite some time before we see a sustained move past $14,000.
Despite this decline’s overt bearishness, there are still many factors that are working in bulls’ favor.
One such factor is a premium to buy spot Bitcoin versus futures contracts, suggesting that there is currently a wave of retail and institutional interest driving demand for spot BTC.
Bitcoin Rejects at $13,800, Plunges to Key Support
At the time of writing, Bitcoin is trading down just over 2% at its current price of $13,320. This is around the price at which it has been trading throughout the past few days, but it does mark a serious decline from its daily highs.
These highs were set yesterday afternoon when the crypto rallied as high as $13,800. The rejection here was grave and instantly sparked a decline that led BTC down to its current price level.
Whether or not it can find support around its current price should provide significant insight into its near-term outlook.
Analyst: Demand for Spot BTC a Bullish Sign
While sharing his thoughts on Bitcoin’s current outlook, one analyst explained that a premium seen while looking towards spot BTC indicates that there is massive retail, corporate, and institutional demand.
He deems this a highly bullish sign.
Image Courtesy of Byzantine General. Source: BTCUSD on TradingView.
Where the market trends in the next few days should determine the long-term significance of this Bitcoin rejection. A sustained decline could be a highly bearish sign.
Featured image from Unsplash. Charts from TradingView
Originally from Bitcoinist.com https://ift.tt/2J51KrV
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