- October 7, 2023
- Posted by: [email protected]
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Bitcoin continues to face suspicion in short timeframes, as repeated attempts to breach resistance levels are met with resistance themselves. The cryptocurrency’s volatility eased on October 6, signaling potential downside movements in BTC’s price. Despite this, Bitcoin has managed to keep liquidations limited, creating an environment resembling a long and short “squeeze.”
Following a failed retest of the $28,000 threshold, data from Cointelegraph Markets Pro and TradingView suggested a relatively flat 24-hour period for BTC/USD. Although Bitcoin made another push towards $28,000 ahead of the Wall Street opening, it raised fresh concerns among market participants about possible future losses.
Daan Crypto Trades, a well-known trader, observed an ongoing struggle between two significant moving averages (MAs) on one-day timeframes. In a post on October 4, he noted, “Whether the Daily 200MA (purple) or the Daily 200EMA (blue) gives in first will likely determine the trend for the rest of October, if I had to guess.” He added, “The battle continues between $27K and $28K.”
Daan Crypto Trades also highlighted a rising open interest (OI) across exchanges, which could trigger a short squeeze followed by a long squeeze. He cautioned, “This has usually been a short squeeze (up) into a long squeeze (back down). We saw this yesterday again. Good to keep an eye on this region.”
Data from CoinGlass indicated minimal liquidations in both long and short BTC positions through October 6. Meanwhile, Material Indicators focused on the trading behavior of whales during the week. Dividing whales into volume-based cohorts, they revealed that different classes of whales were making conflicting moves. Whales with orders ranging from $100,000 to $1 million, typically considered the main driver of spot price action, increased their exposure but failed to ignite a broader uptrend.
Material Indicators reported, “This week, purple whales bought aggressively and sold at the local top. They then started buying dips, accumulating a net +$13.8 million in market orders on @binance over the last 7 days.” However, data also showed that other whales were net-selling, amounting to nearly $60 million over the same period. Material Indicators speculated, “We could speculate whether or not that’s part of the FTX liquidation,” referring to the potential liquidation of assets from the defunct exchange FTX. Regardless of the source, the surprise was not that prices didn’t go higher but that they didn’t go lower.
In the realm of exchange-based setups, popular trading account Exitpump identified a potential liquidity grab being orchestrated below $27,400. The analysis noted, “Price always likes to do multiple kisses into resistance blocks, forming a top.” This suggests that Bitcoin’s price may continue to test resistance levels as market dynamics evolve.
