Bitcoin Whales Sold August Rally, Will BTC Price Trend Lower?
September 05 2022 - 12:41PM
NEWSBTC
Bitcoin is trending sideways into the long U.S. weekend with the
price of BTC compressing around $19,500 and $20,500. The support
around the lower zone of this range might be tested as the number
one cryptocurrency struggles to preserve its current levels.
Related Reading: AVAX Posts Over 2 Million Transactions Over The
Weekend, New Highs Seen At the time of writing, Bitcoin (BTC)
trades at $19,900 with a 1.4% profit over the past 7 days and
sideways price action in the last 24 hours. BTC’s price is heavily
underperforming other cryptocurrencies as Ethereum (11%), Cardano
(14%), and Polkadot (10%), recorded significant profits over the
same period. Data from Material Indicators hints at a potential
local top for Bitcoin on low timeframes as ask (sell) liquidity
gets thicker around its immediate levels. Selling orders have
swelled over the past week as Bitcoin trades sideways and might
operate as resistance preventing BTC to reclaim the area north of
$20,000. As seen in the chart below, as ask liquidity increases,
bid (buy) orders fade around $19,500 contributing to the weakening
of this key level, on low timeframes. The next immediate support is
$19,000 which currently holds around $15 million in buy orders. The
spike in ask liquidity correlates with an increase in selling
pressure from small investors to Bitcoin whales. As the price of
Bitcoin trended to the upside in August, larger players took
advantage of the relief and “dumped” into the market. Smaller
investors followed, but with a slower reaction. Bitcoin whales have
remained flat with bid orders of around $100,000 showing a small
uptick. Additional data from a recent Glassnode report coincides
with Material Indicators, Bitcoin whales have been selling their
coins as the price of Bitcoin trends to the upside. This is a part
of a second distribution phase experience by the crypto market
following a capitulation event. Glassnode noted: Following months
of accumulation, the market managed to rally above $24k, however as
covered in WoC 34 and WoC 35, this opportunity for exit liquidity
was taken via distribution, and profit taking. Can Bitcoin Reclaim
$20,000 In The Short Term? The key area of resistance is $24,000,
as mentioned above, and $24,500 as whales with over 10,000 BTC are
using this zone to “aggressively distribute coins into the range”,
the report noted. Bulls must push above these levels to prevent
further downside and possibly regain some of the bullish momentum.
As a pseudonym users have been noticing, that short positions have
been piling up as Bitcoin moves around support between $19,500.
Over the past week, the market has liquidated millions from
wiped-out shorts as BTC’s price trends closer to $20,000. Related
Reading: Ethereum (ETH) Struggles Ahead Of the Merge, Can Price
Retest $1,900? This might provide the market with enough ammunition
for a short squeeze above $20,000 and into the areas of critical
resistance. It took only a 2% pump for $200 mil in shorts on
Binance to fold. What in tarnation are these guys doing.
pic.twitter.com/Zn4g6qvBpm — Byzantine General (@ByzGeneral)
September 5, 2022
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