The bitcoin price has held fairly steady below $24,000, with sellers unable to firmly chip away at its strength despite weakness seen in altcoins.
BTC’s dominance has risen rapidly as it sucks the oxygen out of the space, with analysts widely targeting continued strength against the altcoins.
However, Bitcoin System app still has some major hurdles in its way that could continue to hinder its growth and prevent a massive uptrend.
This includes the massive resistance between $24,000 and $24,200, and whether or not it can break above this level should provide serious insight into its prospects.
An on-chain analyst explains that certain Coinbase transactions confirm a trend of institutional accumulation.
Bitcoin has been consolidating over the past week and has seen some tumultuous price action that has seen it hover between $22,000 and highs of $24,200. The selling pressure here has been pretty significant.
Still, any rejection and subsequent decline was quickly absorbed by the bulls – suggesting that there is a strong likelihood that another rise is imminent.
An on-chain analyst also notes that transaction activity on Coinbase indicates institutional engagement in the market, including what appears to be a recent transaction of 12,006 BTC sent to various OTC-related cold wallets.
Bitcoin shows signs of strength as altcoins plummet
At the time of writing, Bitcoin is trading at $23,730, which is roughly the price at which it has been trading in recent days.
Selling pressure between $24,000 and $24,200 has triggered several strong sell-offs, but there is a possibility that the bulls will be able to catalyze further gains in the medium term.
This possibility stems from the strong reactions Bitcoin has shown after each sell-off. The bears have been unable to gain serious ground in recent weeks.
On-chain data points to institutional accumulation
One factor that could support Bitcoin in the near term is the sheer amount of institutional exposure to the market at this point.
The CEO of analytics platform CryptoQuant is now watching transactions flow to OTC-related wallets from Coinbase.
„A few hours ago, 12,006 BTC flowed out of Coinbase. As I said, it went to custody-like wallets. It seems Coinbase is making a new cold wallet for every customer after the OTC deal for institutions. I’m very bullish on BTC.“
These types of institutional accumulation trends usually take place days before the cryptocurrency price spikes rapidly.