Bitcoin has seen strong strength in the past few days. The cryptocurrency rose from lows of $ 9,900 to highs of over $ 11,000, which were set today.
This strength is unique in that BTC is the only major cryptocurrency currently on the rise as most of the others are stuck in phases of consolidation or downward trends.
For example, Ethereum is still trading well below its key resistance level of $ 380, with any attempt to break it leading to strong sell-offs.
The weakness of ETH compared to benchmark crypto is largely due to the ongoing downtrend in the DeFi sector, which has created headwinds for Ethereum.
Although Bitcoin appears to be benefiting from this ongoing altcoin exodus, analysts note that a surge in BTC from miners in exchanges suggests a sell-off is imminent.
One trader notes that he expects the benchmark cryptocurrency to stretch its recent weakness a little further before finding enough strength to reverse its downtrend.
Bitcoin flashes mixed signs as analysts watch for a reaction near $ 11,200
At the time of writing, Bitcoin is trading at over 2% at its current price of $ 11,015, which is roughly the value it has been trading at for a few hours.
This is where it meets strong resistance. Many analysts are aiming for an upward move towards $ 11,200 before it declines and potentially falls.
While we're talking about it, an analyst explained that a rejection in this price region would be grim, while a break above it could lead to a clear upward trend in the coming days and weeks.
BTC: Still before dropping below previous range and wants price to go back above $ 11,200. Will watch out for possible rejection at this level. But next, I'm looking for a closing price above $ 11,000. A breakdown to a low $ 10,000 will likely result in a lower value (CME gap $ 9,600), ”he said.
Image Courtesy of Josh Rager. Chart via TradingView.
Miner Exchange surpasses a bearish sign for BTC
Another analyst explained Although he is optimistic about Bitcoin in the medium term, he expects that there will be further weakness in the short term due to an increase in inflows from mining exchanges.
"I'm optimistic about Bitcoin and ETH in the medium and long term, but I don't think last week's correction is over." A big increase in Miners to Exchanges, ”he said.
Image Courtesy of Cole Garner. Chart via Glassnode.
With miners potentially selling to the liquidity created by this sustained boom, there is a good chance that another downtrend is imminent in the short term.
Featured image from Unsplash. Charts and pricing data from TradingView.