The Bitcoin price (BTC) has achieved $20,800 across major exchanges despite whales in Asia selling aggressively. On-chain analysts said that the $18,500 to $19,500 was a “no trading zone” until whale inflows subside.Ki Young Ju, the CEO of CryptoQuant, said:
“For me, 18.5k-19.5k is no trading zone. $BTC will break $20k this year eventually, but I’m just normal long(1x) here since lots of fake-outs due to whales. Will punt another generation(10x) long when the market is silent — fewer exchange inflows and less trading volume.”
There are two key reasons why analysts were cautious about Bitcoin as it struggled to break out of $19,600. First, the high number of BTC deposits into exchanges by whales suggested high selling pressure in the market. Second, the $19,600 level was a heavy resistance area.
“Market keeps flip flopping around this level, failing to breakout with a clean swing failure pattern Notion of caution is warranted – clear 19.6 would invalidate that caution.”
What does this mean for the market?There was significant uncertainty around the short-term price cycle of Bitcoin. Until BTC broke $19,600 with strong volume, the lack of clarity around BTC remained.If this trend continues, it could have a negative impact on large market cap altcoins.Altcoins typically mimic the price trend of Bitcoin with intensified movements to both the upside and downside.Hence, when Bitcoin rises, altcoins rally strongly, but when BTC falls, they see a sharp pullback.The problem for altcoins is that when Bitcoin stays within a tight range, it sees large downside movements but limited uptrends. But when BTC is moving rapidly, altcoins could fall.As CryptoSlate previously reported, technical analysts expect altcoins, like Ethereum, to outperform Bitcoin in the next bull cycle.