Bitcoin Held By Exchanges Hit Two-Year Low But Prices Face $55K Wall

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Bitcoin Held By Exchanges Hit Two-Year Low But Prices Face $55K Wall
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Since shedding nearly 30% and dropping to the $45K lows, Bitcoin has found it hard to get back up. But this week, the digital asset has found some juice. Starting Monday, the digital asset climbed above $50K and by Tuesday had hit as high as $55K. Unfortunately, the bulls have failed to sustain profits as the asset came under heavy selling pressure.

Bitcoin Held By Exchanges Hit Two-Year Low But Prices Face $55K Wall
BTCUSD Chart By TradingView

As of publication, the digital asset is trading just below $55K with bulls facing a major wall at this level. It is especially critical as it is close to the current ATH of $58K. If bulls can keep their foot down and break above $55K, a new high will be the next stop. On the lower side, analyst Michaël van de Poppe believes it is key for Bitcoin to hold above $52K. 

Sentiments remain bullish for the most. One key indicator is the balance on exchanges which has hit a new two-year low. Data from Glassnode shows that exchange outflows have taken another dive. Analysts have been warning that this trend could trigger a supply squeeze. If so, Bitcoin will be set for a long-term bullish run.

Bitcoin Exchange Balance
Via Glassnode

An earlier report from Glassnode further noted that retailers have not been panic selling. Despite the plummet to mid $40K ranges, exchange inflows did not jump and investors did not trigger the usual sell-off. This has been a major sign of a maturing market. A majority of traders are however taking profits at the $55K high leading the digital asset to stall.

As we reported, the $1.9 trillion stimulus package is in motion and is a major boost for Bitcoin. The bill has on Wednesday undergone a final vote in the US House of Representatives. It will then have to go back to the House for revising and approval before President Biden can sign off.

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Once established, Americans will pocket $1,400 in direct relief. It is expected to trigger excitement in both the stock and the crypto market with new deposits and asset purchases.