Bitcoin (BTC) attempted to regain 18-month highs on Nov. 21 as order book activity gave one analyst a sense of deja vu.
Whale Game Reminiscent of Bitcoin’s First Quarter of 2023
Data comes from Cointelegraph Markets Pro and trading view Showing increasing momentum in BTC price, it hit $37,770 the previous day.
Currently, Bitcoin prices are trading around $37,400, still within a range that characterized the second week of the month.
However, for on-chain monitoring resource Material Indicators, the market is more similar to the first quarter of this year – a period that marked the beginning of Bitcoin’s recovery from post-FTX lows.
By analyzing order book data, it suggested that the main liquidity provider, informally known as the “Notorious BID” at the time, might once again form bid support.
Specifically, bid liquidity has come and gone at the $33,000 level “seven times in the last 30 days.” Tell X Subscribers.
“I can’t confirm if this is the entity I named Notorious BID in season one, but I can tell you we’ve played this game before.”
The accompanying BTC/USDT liquidity snapshot also shows sellers lining up at $38,000 and below.
Among whales, it is the largest order category (between $1 million and $10 million) and the only active group, while other groups have uniformly reduced exposure this week.
Commenting on the situation, Material Indicators co-founder Keith Alan believes that the entities behind the buying orders may be more organized than simple large-scale speculators.
The $33,000 bid wall is gone again and Brown MegaWhales are once again buying resistance at the local top.
If you think MegaWhales has a timing issue, please re-read the post I shared @MI_Algos.
No idea how long they keep this game going. Of course, I have my theories… pic.twitter.com/sEZuvSgWIs
— Keith Allen (@KAProductions) November 20, 2023
‘Quick crash’ possible after $40,000
Meanwhile, Michaël van de Poppe, founder and CEO of Trading Company 8, refused to part with $40,000 as he predicted what would happen next.
Related: 70% of BTC Has Been Dormant for a Year – 5 Things to Know About Bitcoin This Week
“Bitcoin continues to move higher. Making higher lows and attacking resistance for the fourth time,” he commented About the overnight incident.
“I wouldn’t be surprised if it breaks out to $40,000 and collapses quickly again. Keep buying the dip!”
Popular analyst Matthew Hyland warned that the relative strength index (RSI) could be at risk of a bearish divergence from prices if it fails to break above the current 18-month high just below $38,000.
As of this writing, bulls are still unable to muster the required momentum.
#bitcoin Everything is still going as planned
Price and RSI are rising
Both need to establish higher highs to prevent any chance of bearish divergence
This situation will be continuously updated: pic.twitter.com/1XxPhiDd28
— Matthew Hyland (@MatthewHyland_) November 21, 2023
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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