The price trend in recent days has undoubtedly been positive for Bitcoin. After hitting a low of $ 8,180 on the day the block reward halved, the cryptocurrency rose higher and approached $ 9,900 a few hours ago.
With the price now consolidating at around $ 9,800, analysts hope BTC will exceed $ 10,000. However, market data indicate that there is a sales wall for buildings at the most important psychological and technical level that could stop a rally.
Bitcoin Sell Wall Worth tens of millions could stop rally
According to order book data from Bitfinex's BTC / USD market shared by a popular crypto trader, There is a massive order block that is supposed to sell Bitcoin for $ 10,000 and that may be difficult to overcome.
Bitfinex's order book shows that there are approximately $ 4,200 Bitcoin sales orders between $ 9,900 and $ 10,600, most of which are between $ 10,000 and $ 10,200. That means that on a stock exchange alone, there is pressure on the sell side of over $ 40 million if the cryptocurrency tries to rise above $ 10,000.
Similarly, another trader found two days ago that market data indicate that there are 2,441 BTC sell orders at Binance $ 10,000 and sell orders of 500 BTC at Bitstamp $ 10,000.
It's unclear whether the above-mentioned sales walls exist on these other exchanges, but it's clear that deep pockets are reluctant to let Bitcoin pass $ 10,000.
Selling orders over $ 40 million don't seem like much in a market where tens of billions of dollars worth of cryptocurrency changes hands every day. But when Bitcoin last saw a sales wall that was similar to the current one, it crashed.
As previously reported by NewsBTC, the cryptocurrency encountered a massive $ 30 million sales wall between $ 10,010 and $ 10,230 on May 9.
In the two days after this sales wall was encountered, the $ 2,000 cryptocurrency crashed as the bulls were unable to overcome this key level.
Bitcoin will get past it sometime
Despite these fears that a selling wall could stop a bitcoin rally, analysts remain optimistic about the technical outlook.
A major trade lately, for example divided the table below. This shows that despite the correction in the past few days, Bitcoin remains above an important resistance: the downtrend that was formed after BTC was at $ 14,000 in 2019. This is a positive time he suggested when he wrote:
"If we downsize the three-day chart, we can clearly see that the downward trend from the 14 km high has already broken, and we simply consolidate and test here again."
Featured Image from Lucas Law on Unsplash