- Bitcoin has seen some intense selling pressure throughout the past 12 hours that has caused it to shed thousands off its price
- This move came about following a failed attempt by bulls to send it up to highs of $38,000 yesterday
- The rejection here confirms that BTC is still firmly range-bound, with whales selling in the upper-$40,000 region and buying in the lower-$30,000 region
- So long as bulls continue guarding the support right below where it is currently trading, there’s a strong possibility that upside is imminent
- One trader is even deeming this selloff as potentially bullish, noting that it helped reset high funding rates and cleanse the market of “degenerate” positions
Bitcoin has been struggling to gain any momentum throughout the past several weeks. Following its rally past $40,000 that resulted in a strong rejection, the crypto has been range-bound between $30,000 and $40,000.
This has allowed altcoins to see some notable momentum, although declines like the one seen today have weighed heavy on their price action.
One trader is noting that there’s a bright side to this selloff, the market was overdue for a correction to sweep liquidity, reset premiums, and liquidate the vast sea of massively leveraged long positions.
Bitcoin Sheds Thousands Off Price Following $38,000 Rejection
At the time of writing, Bitcoin is trading down just over 2% at its current price of $35,100. The crypto rallied as high as $38,000 yesterday before facing a harsh rejection that paved the way for the overnight decline.
Bears sent BTC as low as $34,000 overnight, with the buying pressure proving somewhat significant.
It does appear to be funding some strong support at the moment, which could mean that it will soon see a reversal back into bulls’ favor.
Could This Selling Actually Be… Bullish?
All selloffs are not created equal, and this one may actually be unique in that it lays the groundwork for a more sustainable move higher.
One analyst spoke about this possibility, explaining that degenerate leverage positions have widely been cleared, giving way for a potential Bitcoin rebound.
“Man I love this dump. Nature is healing. Cleanse the market from these degenerates,” he said.
Image Courtesy of Byzantine General.
Where the entire market trends in the coming few days should provide some insight into the significance of this Bitcoin movement.
Featured image from Unsplash. Pricing data from TradingView.