Bitcoin sustained strong above $13000 from the past couple of hours showcasing a strong tendency to Reach All-Time High(ATH) very soon
Some major blocks can pose risk for the Bitcoin bull rally to record new ATH surpassing the current one.
Pump, Dump, Maintain – Bitcoin’s Current Strategy
Since the major crash of March 2020, where-in the Bitcoin prices slashed below $5000 levels, it seems the asset has built up a new strategy. This has helped Bitcoin to regain its price significantly within a very small time frame. The asset has gained more than 300 percent in just a span of 6-8 months.
Additionally, bitcoin dominance is also surging to its highest levels, adding up almost 0.5 percent every single day. At present, the dominance rate stands at 61.7 percent with an increase of 0.62 percent.
In the recent past, Bitcoin is speculated to adopt the ‘Pump, Dump – Maintain’ behavior, following which, a trader can acquire reasonable benefits.
As we can see in the above chart, without creating spikes, Bitcoin comfortably attained the present levels. Each time it surged, it dumped a little and maintained in those levels and finally jumped to the next level.
At present also, Bitcoin was swinging in between $12,800- $13,100 and finally broke above $13,100. Therefore, Bitcoin’s roadmap in the coming days can be predicted based on the above study. It seems that the asset has no way behind to plunged back to any lower levels.
On the contrary, some data manifest the possible risk on the path in forming new ATH.
Trading Volumes Drop on Exchanges
As Bitcoin price shot up, the traders jumped in to purchase the asset. As a result, the Bitcoin price was pumped to the next levels. But after the price touched a new milestone, traders quickly started selling off their holdings, which dumped the price.
A new data provided by Skew analytics indicate that the trading volume on the exchanges has dipped drastically. Bitcoin got its first breakout on Oct 21 following PayPal’s announcement. Since then, it seems that the traders are not willing to let off their Bitcoin holdings.
This may be a matter of concern as the price can again trend in a very narrow range until it gets yet another boost from elsewhere. Low trading volume in the exchanges suggests HODLing by retail or using Bitcoin as ‘smart money’.
As per the recent study carried out by Coinmarketcap, nearly 94 percent of the market HODLers were profitable till 25 October 2020. Hence, HODLing may create scarcity and attract on spot exchanges.
According to data from Whalemap, the outflow of bitcoins began in the second half of 2019. However, the selling was also at the peak till April 2018. So, the traders in between these phases are yet to jump in action.
The current market sentiments are very bullish and hence these barriers need to be addressed at the earliest so the Bitcoin’s bull rally would continue.
The asset is strongly moving towards its ATH and also probably could surpass it very soon. However, the idle traders also need to come into the picture to give Bitcoin price a major push which would assist to break new higher levels.