- Bitcoin is now consolidating within the lower-$15,000 region following an intense selloff overnight
- During this time, bears attempted to invalidate the cryptocurrency’s market structure and push it below the lower-$15,000 region, but bulls have held strong
- Because this decline has been slow and mostly absorbed by buyers, there’s a strong possibility that it will be followed by further upside
- One indicator is flashing some warning signs to investors, with the average returns seen by traders putting the crypto in a “danger zone.”
- Although this doesn’t mean that any intense downside is imminent, it could signal that traders should “proceed with caution” – according to one analytics firm
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.
“By no means is the 30-day price surge for BTC necessarily over. But based on history, when average trader returns are in the top 10% highest profit areas they have been in Bitcoin’s history (as they are now for 1D, 7D, 6M, and 1Y traders), it’s advisable to at least proceed with caution…”
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