Intense Selling Pressure Stops Bitcoin From Retaking Peak
December 2020 restructured the BTC market, allowing the rallies to positively affect pricing like it did in the first few weeks of 2021. Since the digital asset hit its all-time high during that period, it continues to face hurdles such as profit-taking by traders and other investors. When Bitcoin peaked at $42,000, it established a clear difference from its $20,000 price mark.
Now, Bitcoin struggles to pass strong resistance points in the $38,000 range, preventing it from surging to $40,000 and beyond. Instead of surging, the price corrects when its support level doesn’t hold, showing the possibility of a bearish market. Even as the price dropped, investors are not easing their selling pressure, as they continue to sell-off to secure profits.
Selling pressure weakening Bitcoin
Currently, the crypto industry has differing performances from the digital assets. Bitcoin usually forms the benchmark, meaning that when it surges, other coins surge as well. Surprisingly, even with underperformance on Bitcoin, altcoins see an encouraging period as various currencies record new gains. Experts predicted the altcoin season.
They explained that the season would significantly change things for smaller coins when Bitcoin starts to see outflows, which indicates that investors are taking money to other investments, possibly other altcoins. Investors want to invest in smaller cryptocurrencies, allowing them to buy more and make notable gains.
A source predicted that the digital asset could hit all-time highs soon when it manages to break through one of its hurdles, the resistance point. Fortunately, the cryptocurrency overcame its $30,000 resistance, shooting it to an upper price, facing another challenge in its journey to reach $40,000.
Experts suggest that for Bitcoin to record notable highs, significantly higher than its current peak, it has to overcome the resistance point heads on. Another prominent community member hinted that BTC’s failure to overcome it could make it go downward.
Why altcoins currently outperform Bitcoin
No one can guarantee, but experts reveal that the digital asset’s heavy selling pressure differentiates it from others. Institutional entry is one of the most anticipated trends, which Bitcoin got in 2020. Sources imagine that their large sell-offs prevent Bitcoin from peaking.
Investors are a prominent factor for the digital currency’s short-term gain, and unfortunately, they might influence its continuous fall. The high-net-worth individuals entered the market strictly to make a profit, even with people saying that they are bullish, charts reveal that current selling habits show bearishness.
Even ETH shows some new gains since its fall alongside Bitcoin during the first days of selling pressure. Even other coins record new profits as the rallies emerge, signaling new investments amidst the bearish market. The world’s largest digital asset could break soon if rallies surge to pass the $38,000 mark, presently forming its biggest challenge from retaking its position.
To protect the investment, market bulls are doing everything possible to prevent new drops by holding their assets because of the current market situation. The investors will hold their sales until Bitcoin gains some bullish momentum to survive further selling pressure.