Asian Bitcoin (BTC) Traders May Be The One Stopping The King Of Crypto From Entering The Next Phase Of Its Rally
Glassnode analysts have explained who is to blame for Bitcoin’s pale performance—and why the $45,000 level is crucial for its rally.
Asian selling power is running out of steam
Chain analyst Johannes, who goes by @ultravirtu, took to Twitter to compare the activity of Asian, European and American traders in the Bitcoin (BTC) markets in recent years.
According to him, based on Glassnode’s on-chain data, a huge “amount of selling” from Asia is one of the main drivers behind the current Bitcoin (BTC) price downturn.
At the same time, the momentum of this catalyst seems to decrease over time. The opposite factor, pushed by US and EU traders, is instead gaining momentum.
As covered by U.Today previously, in March, 2021, the selling power also came from Asian market sessions.
Bloomberg analysts released this theory based on their analysis of intraday lows and highs during the early March sessions.
Levels to watch: $45K, then $42K
Another Glassnode analyst, @TXMCtrades, studied the behavior of long- and short-term holders of the flagship cryptocurrency.
Newbie Bitcoiners (BTC) are now underwater, he said.
Long-term holders reach a crucial point at which their bags increase in value by 2.5x. When this level holds, historically, it is a sign of powerful demand for Bitcoin in the short-term perspective.
Otherwise, it takes Bitcoin (BTC) several months to recover. If their estimates work this time around, Bitcoin (BTC) bulls need to defend the $ 45,000 level.
Also, this level is located near the 50% point of this year’s price range. This combination of factors confirms that holding above $45K is lethally important for Bitcoiners (BTC).
At the same time, going below $ 42,000 will permanently seal the deal for Bitcoin (BTC) bears, as the cryptocurrency’s flagship asset “will be uglier price action,” an analyst added.
