Bitcoin multi-week consolidation phase comes close to the strong uptrend it was able to post late last month.
While its macro outlook remains incredibly strong, it looks like the short-term outlook is being hampered by a heavy resistance of $ 12,000.
Buyers tried to break this level yesterday, although the selling pressure here is too great.
It’s important to note that yesterday’s bid at this level didn’t catalyze any strong pullback or rejection, signaling that the buyers are building strength.
Another factor that bodes well for BTC as it is nearing a key resistance level in the short term is the whale who has accumulated a lot of BTC over the past few weeks, seemingly unconcerned about its slowdown.
Intense whale accumulation periods do not always directly follow any breakout rally, but they bode well for the medium-term outlook for the asset.
Bitcoin is below major resistance
At the time of writing, Bitcoin is trading slightly down at its current price of $ 11,861.
Yesterday, the bulls made a breakout move of $ 12,000, but selling pressure here has once again proven insurmountable.
Unlike the denial seen last Saturday, BTC was able to maintain its stability for the time being after this denial. This is a sign that the bulls are building strength.
Some investors have speculated that Ethereum’s power will be enough to drive the cryptocurrency higher – as ETH recently posted a breakout rally that allowed it to climb from a low of $ 370 to a high of $ 450.
For now, analyst “Crypto Michael” is expecting Bitcoin’s range-bound transaction to expand further. He notes that its range could narrow due to new support of around $ 11,650.
“The lower timeframe we’ve reached both of the TP’s (first one $11,750, second one $12,000). Support levels lower timeframes; $11,650 and $11,400-11,500. Overall suspecting continuation of the ranging.”
The lower timeframe we’ve reached both of the TP’s (first one $11,750, second one $12,000).
Support levels lower timeframes; $11,650 and $11,400-11,500.
Overall suspecting continuation of the ranging. pic.twitter.com/XKGlolQGZ5
— Crypto Michaël (@CryptoMichNL) August 15, 2020
Whales still accumulate BTC despite stalling momentum
Bitcoin’s failure to break above $ 12,000 is unlikely to stop wealthy investors from adding their positions.
Analyst “Byzantine General” spoke of the trend in a recent tweet, mention the Bitcoin Unspent map while explaining that there is still a strong accumulation trend among whales despite the relatively high price of BTC.
“Whales are still accumulating at these prices.”
Whales are still accumulating at these prices.$BTC pic.twitter.com/nJNPI1wxB0
— Byzantine General (@ByzGeneral) August 15, 2020
It is not clear if this trend will give Bitcoin headwind, but it is a positive development nonetheless.
You can see the Bitcoin price here.
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