Bitcoin has seen a sharp overnight sell-off that brought the price down to as low as $ 8,800 today, with the support here again to help the cryptocurrency climb higher.
This turbulence came close to the heels of a multi-day consolidation period in the lower $ 9,000 region, and the break below the lower mark of its previous trading range around $ 9,200 seems to have catalyzed this move.
One factor that could influence whether or not the benchmark cryptocurrency sees a recovery in the coming days and weeks is the existence of multiple huge sales walls on the OKEX cryptocurrency exchange.
These sales walls exist in the lower $ 9,000 region and may prevent it from seeing a noticeable recovery in the coming days and weeks.
Bitcoin drops below $ 10,000 as sales pressures rise
At the time of writing, Bitcoin is trading at just under 3% at its current price of $ 8,900. This decline comes shortly after the crypto was caught within a multi-day period of sideways trading.
It now appears that BTC is at great risk of moving further down as upside momentum begins to falter.
It’s important to note that the crypto was able to defend USD 8,800 today, which has been a major support level for the past few days and weeks.
In the short term, analysts seem to believe that the crypto is positioned to move further down if it cannot stay above USD 8,800.
An analyst spoke about this in a recent tweet, to explain that he believes Bitcoin will eventually reach $ 8,250 if it is unable to stay above key support in the near term.
The same analyst also notes that there is a gap in the CME futures of $ 9,200 – meaning a visit to this level is imminent.
“Still range-bound and it looks like the USD 8,250-8,500 support will be tested if USD 8,800 breaks. CME gap up to $ 9,200 nonetheless, ”he said, pointing to the chart below.
These massive sales walls can curb BTC’s growth
The existence of multiple massive sales walls on the OKEX cryptocurrency exchange may be enough to prevent Bitcoin from seeing growth in the coming days and weeks.
A popular pseudonymous cryptocurrency analyst on Twitter spoke of this incident in a recent tweetexplained that multiple walls are stacked in the lower $ 9,000 region, each worth about 10 million contracts.
Okay, OkEx. Each of those walls is about ~ 10 million contracts, ”he said, pointing to the map below.
These sell orders will be triggered as the price of Bitcoin starts to rise higher and could prevent the cryptocurrency from generating decisive upward momentum in the near term.
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