The chances of a sell-off increase due to a 2,800 BTC sale wall on Binance. That keeps the BTC rate at $ 10,500.
According to Cole Garner, a well-known on-chain analyst, there is a risk of a selling wall of 2,800 BTC at Binance. The Bitcoin ( BTC ) price is currently $ 10,700, so that’s equivalent to a package of sell orders worth $ 30 million on just one exchange.
While that doesn’t necessarily mean an immediate market decline is imminent, it does suggest that a major rally is unlikely. In the short term, Bitcoin Lifestyle is likely to face a small range of volatility between $ 10,500 and $ 11,000. Both are important supports and resistances .
Painful scenario for Bitcoin and top cryptocurrencies
For the past two years, Bitcoin has been in the red in the fourth quarter. Some believe this is a cyclical movement, while others suggest it is pure coincidence.
As the fourth quarter has now begun, there are several macro risks that could slow the momentum. Including the controversial presidential election , the economic slump caused by the pandemic and ailing US stocks.
In addition to the negative fundamental factors that are putting pressure on BTC, the technical data suggests that a breakout is further unlikely.
The massive sales wall at Binance is just one of many technical reasons that make a strong outbreak unlikely . This may also be the reason why the Bitcoin price failed to break the resistance at $ 11,000.
At least last week, Bitcoin was able to vigorously defend support at $ 10,500. The technical structure and sentiment of the digital asset are not negative either. Rather, these aspects are rather neutral and indicate an accumulation phase.
Due to the recent Bitcoin price trend and the large Binance sales wall, there could be renewed accumulation, according to Garner. He explained:
„There’s a 2,800 BTC wallet on Binance at $ 11,000. Unstoppable force hits the immovable object. Welcome to accumulation again.“
The technical factors could cause BTC to move sideways between $ 10,500 and $ 11,000. Industry folks believe that Bitcoin fundamentals are still overwhelmingly positive.
Rafael Schultze-Kraft, the technical director at Glassnode, said Bitcoin had „massive room for growth“.