• Mon. Sep 25th, 2023

Bitcoin Whales Increase Selling, BTC Rejected From $20,000

ByReynaldo Marquez

Sep 2, 2022
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Bitcoin has been experiencing some volatility over today’s trading session as the price of BTC touches critical resistance levels. The number one crypto by market cap positively reacted to macroeconomic factors, but as the weekend approaches, low levels might lead to sudden price movement.

At the time of writing, Bitcoin (BTC) trades at $19,800 with a 1% profit in the last 24 hours and an 8% loss over the past week. The cryptocurrency saw bullish price action after the U.S. posted important metrics about their economy, but the rally was short lived as BTC stumble below a cluster of selling orders at around $20,400.

BTC’s price moving sideways on the 4-hour chart. Source: BTCUSDT Tradingview

Data from Material Indicators shows how the liquidity in the Binance order books has been following the price of Bitcoin. Large players have been setting buy and sell orders as BTC approaches critical levels.

As seen in the chart below, today’s rejection was triggered by a stack of around $20 million in asks orders as Bitcoin trended to the upside. The price has seen a similar pattern during this week with BTC’s price trending upwards only to experience overhead resistance triggered by a spike in ask liquidity.

BTC’s price sees spikes in sell orders when it approaches $20,500 on lower timeframes. Source: Material Indicators

On the opposite direction, buy (bid) orders have remained relatively more stable with $19,500, $19,000, and $18,000 displaying the most liquidity. These levels will be critical as they will operate as support and prevent BTC’s price from reaching a new yearly low if the market attempts to trend lower.

In that sense, Material Indicators also show an increase in selling pressure from large players. Asks orders of over $100,000 and $1 million have been increasing on lower timeframes and could operate as a short-term hurdle for any potential upside.

In the U.S., the weekend will be extended until Tuesday due to a holiday. This often leads to spikes in volatility as low volume influence the price action.

What Could Play In Favor Of Bitcoin?

Additional data provided by analyst Justin Bennett indicates a potential rejection of the U.S. dollar as the currency attempts to break above an important flat base. This could lead to reclaim of levels last seen in 2003.

However, the currency has been unable to clear the area above 109, as measured by the DXY Index, and a “fakeout” might be in play. Bitcoin and the crypto market have been negatively correlated with the U.S. dollar. Therefore, a rejection might play in favor of the nascent asset class. Bennett said:

So far, it looks like the $DXY was “wrong”. Maybe a pullback to 107 next week if this trend line breaks. That would be bullish for crypto in the short term. But ultimately, I think the USD index heads to 112-113 and probably even higher.

U.S. Dollar facing potential fakeout on the 4-hour chart. Source: DXY Index on Tradingview via Justin Bennett

Image and article originally from www.newsbtc.com. Read the original article here.