Bitcoin bulls put pressure on $28k as calls for BTC price collapse grow
Bitcoin (BTC) eased volatility into October 6 as BTC price decline events returned.
Bitcoin limits liquidity between long and short “squeezes”.
Data from Cointelegraph Markets Pro and TradingView showed a 24-hour flat for BTC/USD after the $28,000 test failed.
After staying in a narrow range of 1.5% lower, the largest cryptocurrency was once again pushing towards the $28,000 mark from the Wall Street open, but presented fresh concerns from market participants about possible losses.
$BTC / $USD – Update
I'm staying long above $26,000 for now, but I'll close that and go short if we lose support below $27,200. Alerts are set and I'm on standby pic.twitter.com/mcS9Zcp5zN
— CryptoTony (@CryptoTony__) October 6, 2023
Popular trader Diane CryptoTrades has seen an ongoing skirmish between two key moving averages (MAs) on the same day's time frame.
“If I had to guess, the daily 200MA (purple) or the daily 200EMA (blue) will determine the trend for the rest of October,” he wrote with a chart on the X-Post on October 4.
“The battle between $27,000 and $28,000 continues.
Daan CryptoTrades then points to open interest (OI) on exchanges, which results in a squeeze of shorts and a squeeze of long shorts, respectively.
“This is usually a short squeeze (up) to a long squeeze (back down). We saw this again yesterday. It would be good if we pay close attention to this region,” he commented.
#Bitcoin Open Interest hit the 8.7-9.1B range again where we've seen a lot of squeezes happen recently.
This is usually a short squeeze (up) to a long squeeze (back down).
We saw this again yesterday.
It is good to keep an eye on this region. pic.twitter.com/yojcBHSGzk
— Dan Crypto Trades (@DanCrypto) October 6, 2023
Data from monitoring source CoinGlass showed negligible liquidity in both long and short BTC positions as of October 6.
Low BTC Price Shortage “Shocking”
Indicators of monitoring resources turned the spotlight on the nature of the whaling trade during the week.
Related: Bitcoin Expects Bull Market As US Faces ‘Bear Steepener' – Arthur Hayes
He divided the whales into groups based on sounds, showing different “classes” of whales making contrasting movements. Orders worth between $100,000 and $1 million — the material indicators often say are the main driver of spot price action — added exposure, but failed to trigger broader growth.
“This week purple has aggressively bought and sold the local edge. Then they stared buying a NET +$13.8M dip in market orders on @binance in the last 7 days,” he explained.
The data also showed that other whale nets sold nearly $60 million over the same period.
“We can speculate whether that is part of the FTX liquidation or not,” the materialist added, referring to the assets that could be removed from the lost FTX exchange.
“Of course it doesn't matter who he is, but if there's anything surprising, that doesn't raise the price…
On the topic of exchange-based setups, popular trading account Exitpump similarly spied a settable amount below $27,400.
“Price always likes to do a lot of kissing.
$BTC can be returned to 28k. Good amount of bid liquidity under 27.4k on Binance spot orderbook.
Price always likes to kiss a lot, forming a resistance block above. pic.twitter.com/ZvUVEeqULY
— exitpump (@exitpumpBTC) October 5, 2023
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