Bitcoin (BTC), despite reaching a new weekly high of $20,000 on Oct. 18, market watchers waited patiently for action.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
As stocks rise, Bitcoin slows down
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD was able to defy volatility again today.
Despite stronger moves by Wall Street open stocks in the United States, the pair remained stable. The S&P 500 Index and the Nasdaq Composite Index were respectively up 1.5% & 1.2% at the time of writing.
According to financial commentary resource, the Kobeissi Letter, “We are now witnessing a second well overdue relief rally stock prices,” he said to his Twitter followers.
“After nearly a month of straight-line price declines, it was time for a rebound.”
The post ended with a warning about the Federal Reserve meeting, at which another rate increase would be announced.
“However, Q3 earnings are beginning and the Fed meeting is approaching, we’re far from the clear. It advised that you use stops and not get trapped.
The mood was still uncertain so crypto commentators tended to stick to their existing predictions for short-term price movements.
Michael van de Poppe (founder and CEO of Eight trading platform) wrote part of a tweet about the day.
Il Capo, a popular trader in Crypto, declared Bitcoin “ready for pump to 20k+,” and had already set a $21,000 target for the relief rally.
Crypto Tony, a fellow trader, was less optimistic about the range of BTC/USD over the next week. He flagged the $20,000 area as a place where a longer-term trajectory decision could be made.
BTC/USD chart annotated Source: Crypto Tony/Twitter
Late 2020: Exchange activity
Interesting conclusions were drawn from the analysis of exchange order books regarding the current price structure.
Related: Bitcoin price “easily” due to hit $2M within six years — Larry Lepard
Binance, the largest volume exchange, had a significant wall of resistance at $20,000; something Material Indicators, an on-chain analytics resource, likened it to November 2020.
Bitcoin broke the $20,000 barrier abruptly, launching months of upside to new highs close to $60,000.
Material Indicators stated that BTC’s last sell wall was in Nov 2020, directly above its active trading range.
It was the exact same amount at the identical price. To kick-start the bull run, more than $100M was spent on ask liquidity. You shouldn’t assume a breakout from this point will cause the same thing, but …”
Chart of the BTC/USD perpetual forwards order book (FTX). Source: Il Capo of Crypto/ Twitter
BTC/USD Order Book Chart (Binance). Source: Material Indicators/Twitter
Il Capo of Crypto also highlighted activity on the derivatives platform FTX. He noted that traders there had provided strong support and argued that this was “pushing up the price.”
com. You should do your research before making any investment or trading decision.