Bitcoin

Bitcoin’s price remains at $10,500, but a $30 million selling wall hinders its potential

A 2,800 BTC sales wall at Binance increases the possibility of a massive sale and keeps the price of Bitcoin trapped below $11,000.

According to Cole Garner, a highly respected on-chain analyst, there is a wall of 2,800 BTC sales at Binance. With the price of Bitcoin Circuit currently trading at USD 10,700, this equates to a lot of sell orders worth USD 30 million on a single exchange.

While it doesn’t necessarily indicate that a market-wide reversal is imminent, it does suggest that a major upturn remains unlikely. In the short term, BTC is likely to face a low-volatility range between USD 10,500 and USD 11,000, two key levels of support and resistance.

BTC/USD chart showing a 2,800 sell wall at Binance

BTC/USD chart showing a wall of sales of 2,800 at Binance.
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Over the past two years, Bitcoin recorded negative net returns in the fourth quarter. Some attribute this to cyclical movements, while others suggest it’s pure coincidence.

As Bitcoin heads into Q4, there are several macroeconomic risks that could slow its momentum. These factors include a highly controversial presidential election, a pandemic-induced economic recession, and the struggle of U.S. stocks.

In addition to the negative fundamental factors that could put pressure on BTC, technicians suggest that the probability of a disruption remains low.

For example, the massive sales wall at Binance is one of the many technical reasons why a peak in volatility is unlikely and possibly why the price of Bitcoin has not been able to break through the $11,000 resistance level.

Some positive aspects are that Bitcoin has also strongly defended the 10,500 USD support level in the last week and the technical structure and the sentiment of the digital asset are not bearish. Rather, they’re neutral and point to a build-up phase.

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Based on the recent price trend of Bitcoin and the large wall of sales at Binance, Garner emphasized that a re-accumulation could occur. He said:

„Binance with a sales wall of 2,800 BTC at USD 11,000. The unstoppable force meets the immovable object. Welcome to re-accumulation“.

Although technical factors may cause BTC to trade sideways between $10,500 and $11,000, industry executives say Bitcoin’s fundamentals remain overwhelmingly positive.

Rafael Schultze-Kraft, technical director of Glassnode, said Bitcoin has „a huge room to grow.

Bitcoin Market Cap to Thermocap Ratio

Relationship between Bitcoin market capitalization and thermocap Source: Glassnode

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He cited the relationship between market capitalization and Thermocap, which shows that BTC is nowhere near a ceiling. Schultze-Kraft noted:

„The market capitalization to Thermocap ratio suggests that #Bitcoin has a huge space to grow from here. It hasn’t even begun to show the strong increase that is typical in bull markets. Current levels are an order of magnitude higher than previous $BTC peaks.