Bitcoin’s Recent Price Rise Could Be Limited by Increased Exchange Sell Orders: Coinbase

“Data suggests there may be some profit-taking at current levels, which could limit price gains as market participants become more willing to sell in line with price gains,” Coinbase analysts wrote in a report Friday.

Bitcoin Selling Pressure Still Existing

Duong and Han pointed to Arkham Intelligence data showing specific factors driving recent Bitcoin selling pressure. “The Mt. Gox redemption remains a source of pressure after distributing around 50,000 bitcoins to the exchange since July 5, leaving a custodian with a balance of 90,300 bitcoins,” they said.

However, they added that digital assets are taking some comfort from the changing political landscape in the US. “This has allowed tokens to keep up with the sharp US dollar devaluation in July, which saw the multilateral DXY index fall more than 2% for the month, and since Bitcoin is often valued in US dollars, it tends to benefit when the US dollar is weak,” they said.

Bitcoin Remains Resilient Despite Stock Market Crash

The largest digital asset by market cap remains resilient despite the plunge in U.S. stock indices, particularly in the tech sector. “Bitcoin remains particularly resilient as Mt. Gox supply continues to slump and stocks continue to slump,” QCP Capital analysts said.

U.S. stocks started lower on Friday, with the Dow Jones Industrial Average down 122 points, or 0.3%, at 40,534 after opening. The Nasdaq Composite also looked set for further declines after its worst two-day session since October, falling 41 points, or 0.2%, to 17,843.

Bitcoin price rose 3%. It has been trading for the last 24 hours and is trading at $65,776 at the time of writing. The pricing page of the block.

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