Bitcoin has seemingly entered no man’s land, with the price ping-ponging between $11,000 and $12,000. A top analyst has corroborated this sentiment, recently noting that neither his bull nor bear case has been confirmed.
Chances are that this consolidation will resolve upward, though, according to a new analysis. This analysis suggests that there is little on-chain resistance stopping BTC from rallying to new local highs and beyond.
Bitcoin Could Be Buoyed as Few Sellers Remain
According to recent data from WhaleMap shared by a crypto trader, there is little on-chain resistance stopping a Bitcoin rally from current levels. Referencing the chart below, the trader wrote:
“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.”
Chart of BTC's price action over the past three years with a on-chain upsent BTC analysis shared by crypto trader ByzantineGeneral and from WhaleMap.io
Mike McGlone, senior analyst at Bloomberg Intelligence, has also commented on how Bitcoin’s supply-and-demand dynamics suggest prices are tilted to appreciate in the longer run.
The commodity analyst and cryptocurrency bull said the following on August 19th:
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.