Bitcoin Encounters "Sell Wall" Right Before ATH: What Trick Are Whales Playing?

Bitcoin has encountered a resistance level at $105,706, slightly below its all-time high, before entering a sideways consolidation phase. The pullback has shifted the overall sentiment around cryptocurrency, leading to hesitation among users, especially retail investors. A close observation reveals that large sell orders are emerging just below Bitcoin's all-time high, raising curiosity among traders about why such sell walls are appearing and what they mean for the future of cryptocurrency. What are these Bitcoin selling walls and why do they appear? To understand more clearly, cryptocurrency traders describe sell walls as large orders to sell a digital asset, in this case Bitcoin, concentrated around a specific price range. These walls often appear after the BTC price rises sharply, signaling that institutional traders or large holders, often referred to as cryptocurrency whales, may be looking to take profits. Retail investors often identify sell walls by reviewing order books on notable exchanges, using them as trading guides and indicators of what may happen. The latest Bitcoin market situation highlights the typical impact of such scenarios, considering the recent price consolidation of the digital asset and the subsequent sideways movement. Retail investor reaction: Learning from historical wall patterns Although retail investors may not understand why institutional traders choose their sell targets, historical trends show a consistent pattern. Such patterns that form over many years will inform the trading decisions of retail investors, affecting how they approach the market in such periods. For example, some traders believe that cryptocurrency whales intentionally set up sell walls to push the price down during bullish periods. Such whales may do this on purpose because they want to buy more assets at a lower price after the price drops. Others may want to profit from their trades and end a trading phase. Selling near the ATH of Bitcoin: A clear signal for retail investors in cryptocurrency. Regardless of their purpose, the impact of large sell orders and their historical patterns provide important information for traders. As mentioned, they occur around significant levels, such as notable resistance levels and all-time highs. Therefore, for experienced digital asset traders, seeing sell walls forming near Bitcoin's ATH is not necessarily surprising. Instead, it is a clear signal to adjust their strategy, closely monitor the Bitcoin market, and make well-considered decisions to protect their investments while still aiming for profits during this stable price phase.