Bitcoin (BTC), briefly touched $43,000 before Wall Street opened on Jan. 6, as new market analysis showed bad news for bears.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
“Very similar to $30,000
Data from TradingView and Cointelegraph Markets Pro followed BTC/USD’s range after it had fallen to its lowest level in almost six weeks.
Despite six-month lows in sentiment and a sense of foreboding on Social Media, analysis into trader behavior found that things are not so bad as they seem.
Popular Twitter account ByzantineGeneral argued in a series on the day that sellers are almost exhausted despite all the negatives.
He summarized, “This is beginning to feel very similar the 30k range now.”
“The imbalance between the ask and bid sides is getting insane.” Spot bids are constantly being filled with new orders, while the ask side is failing to repopulate in any meaningful way.
Order books for Bitcoin include both “active” as well as “passive” flows. The former trading spot is what sets the trajectory at any given time.
As BTC/USD fell almost 10% overnight, bears lost momentum and are now fighting for active buyers interest at current levels.
Byzantine General said, “At the moment it’s just a waiting game… Price is sitting on top a thick bid side (and the active (sell flow) has given up.”
The status quo will not last as buyers will be looking to shift the market and raise their bids. The theory is that this will create a snowball effect, allowing buyers to “slice through” the book like butter.
He said, “This is the feeling that I had at the 30k mark and I’m still getting it,”
“Maybe there is less buying power in the tank, but I think this range is accumulation and not distribution.”
BTC/USD 1-day Candle Chart (Bitstamp), showing the summer consolidation period. Source: TradingView
Pentoshi, a fellow trader who has taken a conspicuously cool view on Bitcoin’s future cycle since November, responded by warning that it wasn’t just about order book cues.
“Live, die, repeat”
November’s record-breaking $69,000 highs saw the start of selling by long-term owners, as is typical with every bullish cycle peak.
Related: Bitcoin monthly RSI at its lowest since September 2020, fresh ‘oversold’ signal
Many believe that the true peak of the cycle has not yet come, despite the short-lived nature.
Nevertheless, market participants were able to see the similarities between the $30,000 floor in summer and the present day.
#Bitcoin Update: $42,333 was today’s wick low. We also retested the trendline. Today, we are retesting the trendline low at $39,9 15min Pot Bull Div, SL below $42.333 or one month of similar choppy PA, like at $30k. This thread is still active. https://t.co/TT9iPkSau8 pic.twitter.com/MUCzzqU2GA
— ANBTCESSA, @Anbessa100 January 6, 2022
“Uncanny how BTC works in Jun-Jul deja vu. Willy Woo, statistician, tweeted, “Live, die, repeat.”
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.