In recent days, sellers have increased pressure from all sides. Bitcoin miners have been selling the assets on an invisible scale for over three years. Furthermore, the flow of whale-related BTC for exchange has skyrocketed. Combining these two data points shows that miners and whales sold in tandem.

Bitcoin continues to trade below $ 18,000 after a week of heavy sales from whales, miners and possibly organizations. Analysts generally believed that the $ 19,000 area was a logical area for investors to make a profit, and therefore the return was healthy. As the second half of December approaches, price analysts expect that the decline in Bitcoin (BTC) prices will be limited and will be followed by a gradual upward trend.

The rise in the US dollar was another potential catalyst that could drive Bitcoin’s correction in the short term. The US Dollar Index (DXY) recovered after falling for several months. The rise in the dollar could have been driven by the news of the upcoming distribution of the Pfizer vaccine and the possibility of a major economic recovery in 2021. As the value of the US dollar rises, value-creating stores such as bitcoin and gold fall.

While the combination of a stronger dollar, an influx of whales and higher sales from miners has pushed the price of bitcoin down, some believe that the likelihood of a stable uptrend in bitcoin is still high.

The disadvantages are limited, and the outlook for December remains bright.
Speaking to Cointelegraph, Denis Vinokurov, head of cryptocurrency exchange research and broker BeQuant, said that the selling pressure on Bitcoin could come from two additional sources. First, Encapsulated Bitcoin (WBTC) has been burning this entire week, which means selling used bitcoins in a decentralized economic ecosystem. Second, the influx of hedges into the options market has added further sales pressure in the short term.

Given that unforeseen external factors are likely to push the bitcoin price down, Vinokurov expects this decline to be limited in the near future. He also stressed that Brexit uncertainty and US incentives will ultimately have a positive impact on Bitcoin, as appetite for risky assets and alternative valuation can be restored:

“Uncertainty about Brexit and the US stimulus plan can be devastating at first, but eventually positive. So expect the downside to be limited and the stability to recover. ”
Jay Hirsch, CEO of eToro in the US, told Cointelegraph that Bitcoin has been selling from all directions in recent days. But since Bitcoin is doing strong in December based on its historical collections, he expects buyers to activate BTC during a significant fall.

In 2017, for example, Bitcoin experienced extreme volatility and shock as the end of the year approached. But at the end of December, the dominant cryptocurrency rose sharply, reaching a full-time high of around $ 20,000. Since then, Bitcoin has surpassed this number, but has not managed to stay higher. According to Hirsch, if the sales pressure on Bitcoin falls in the next few weeks, it may be approaching a significant year-end:

– Bitcoin has come under some sales pressure from all quarters, but the long-term outlook is still optimistic. We may see a slightly larger decline towards the end of the year, but many investors see these declines as buying opportunities, and are likely to prevent Bitcoin from correcting as much as the last time it climbed above $ 19,000 in December 2017. ”
Positive corporate emotions are crucial
In recent months, organizations have amassed large amounts of bitcoin. Life insurance giant MassMutual recently bought $ 100 million dollars in bitcoin. These purchases from institutional investors represent direct purchase demand for bitcoin. But most importantly, it sets a precedent and encourages other institutions to do the same.

Given the continuing trend for institutions to dedicate part of their portfolios to bitcoin, this means that this delay may persist in the medium term. In that case, Hersh also pointed out that organizations are likely to buy bitcoin in a downturn in the near future. According to him, companies “take advantage of this temporary recession to replenish an asset that many believe is being traded at a discount,” and when that happens, the price of bitcoin may respond positively:

“We see many announcements from companies around the world, either announcing plans to start trading or HODLing Bitcoin, or revealing that they really do exist – Guggenheim, Standard Chartered, Fidelity, Microstrategy, PayPal and Square, the list goes on. ”
What is expected of Bitcoin soon?
Some technical analysts say that the bitcoin price is in a relatively straight price range between $ 17,800 and $ 18,500.

Source: CoinTelegraph

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