However, while profit-taking is a normal part of market cycles, large-scale selling can increase short-term selling pressure and make it harder for Bitcoin to sustain its upward momentum.
This, because the price of Bitcoin is also facing selling pressure. At the time of writing, it was trading at $82,406.58 after falling by 4.5% in a week.
At the same time, the RSI was also in the healthy range, suggesting that bulls may be outpacing bears. Meanwhile, the parallely running Bollinger Bands suggested that $BTC entered a steady state with the price moving in a structured channel.
Can buyers save Bitcoin from falling into sellers’ hands?
Needless to say, Bitcoin did face rejection around the $86,500-resistance level. This happened because of significant sell orders that prevented the price from moving higher.
Following this rejection, the world’s largest cryptocurrency moved south toward areas with significant buy orders. In fact, the largest concentration of these bids was reportedly hovering around $81,000.
So, given the case in point, if buyers absorb the available selling pressure, this zone could help stabilize the price and act as short-term support. However, if selling intensifies or buyers withdraw their orders, support is not guaranteed to hold.
Still, one thing is clear – Existing holders and investors who accumulated $BTC earlier have played a significant role in supporting the rally.
However, the reported decline in fresh capital flowing through ETFs, stablecoins, and corporate treasuries may be evidence that new demand may be weakening.
Existing holders can sustain an advance for some time, but stronger inflows from new investors would provide additional buying power and make the rally more sustainable.
Is Bitcoin in a flux?
Maybe, especially in the aftermath of $BTC ETFs seeing outflows worth $409.71 million in October so far. This implied that maybe everything is not rosy yet.
As it stands, Bitcoin is facing a critical test between profit-taking and fresh demand. The $81,000-zone could provide support, while resistance near $86,500 – $87,000 remains a hurdle.
Final Summary
- Bitcoin faced rejection around the $86,500-resistance level, where substantial sell orders prevented the price from moving higher.
- $BTC ETFs have recorded outflows worth $409.71 million in October so far.
