Bitcoin and the aggregated crypto market have been struggling to gain momentum throughout the morning, with fresh inflows of selling pressure slowing the recent uptrend.
The benchmark digital asset rallied up to highs of $16,000 a couple of days ago before its momentum stalled, and its price began drifting lower.
Its stalling momentum proved to be a good thing for altcoins, as Ethereum and many other digital assets raced higher. ETH was able to rally towards $455 before facing any selling pressure.
One analytics firm is now noting that traders should express caution when it comes to Bitcoin’s near-term outlook.
Bitcoin’s Momentum Stalls as Buyers Defend Against Downside
At the time of writing, Bitcoin is trading down just over 1% at its current price of $15,380. This is around where its price has been trading all morning.
The selling pressure within the upper-$15,000 region has proven to be quite intense, as each visit to this level has been following by inflows of selling pressure.
Until Bitcoin can shatter $16,000 and flip this level into support, there’s a strong possibility that it will continue acting as resistance and hampering the cryptocurrency’s price action.
Analytics Platform: Traders Should Proceed with Caution as Investor Profitability Rockets
While speaking about Bitcoin’s near-term outlook, one analytics firm explained that the massive rise in investor profitability seen as of late is a warning sign, as traders may soon begin taking profits off the table.
Image Courtesy of Santiment.
This ongoing dip may be the dip that investors have been waiting for, and a potential influx of buy-side pressure could send Bitcoin rocketing higher.
Featured image from Unsplash. Pricing data from TradingView.
Originally from Bitcoinist.com https://ift.tt/2I8iezE
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