Singapore – Since November, Bitcoin has indeed experienced an amazing week. Recently, it made new all-time highs on the largest Bitcoin exchange. The fact that the digital currency did not make a new all-time high record on retail exchanges has indeed driven this bull run.
The major news events, such as the Guggenheim Partners $295 billion investment fund making a $500m investment into Grayscales GBTC, have caused the recent surge.
Of course, Ethereum 2.0’s recent launch also brought new eyes to the crypto market. According to recent reports, more people are now starting to understand that the crypto industry is not fairy dust with a real-world value.
In less than a week, Bitcoin‘s price set a new all-time high at $19,920.53. The reason that this milestone is crucial is that many sell orders are near the US$20,000 level because many holders are afraid of the near-term sell-offs.
According to a Hong Kong-based crypto lender Babel Finance, the huge number of sellers offering prices near the $20,000 can create a strong resistance level. Many traders are selling at this level since they base the possible results on the 2017 bull market.
The crypto quant firm Trade Terminal CEO, Lingxiao Yang, also stated that the $20,000 level could become psychological warfare for many. It only took Bitcoin about a month to go p from around $14,000 to its new all-time high this December. Yang claimed that the public’s emotional element has largely been reflected on the retail investors’ side. Ki Young Jun, CryptQuant’s CEO, stated in a tweet that whales don’t withdraw means that BTC is still available for selling. If whales think that BTC price will go p, they will withdraw a lot. The further evidence of Bitcoin‘s increased selling pressure near $20,000 is that more wrapped BTC have been unwrapped from the cooling DeFi.