Tracking Whales, What This Bitcoin Divergence Could Hint About BTC’s Price
June 29 2022 - 3:53PM
NEWSBTC
Bitcoin is trending downside on lower timeframes and seems to hint
at future losses. The number one crypto by market cap records a 3%
loss in the past week, but there is a potential sign of hope for
the bulls. Related Reading | Why Ethereum Could Trade At $500
If These Conditions Are Met At the time of writing, Bitcoin (BTC)
trades at $20,000 with a 1% loss in the last 24 hours. As a
pseudonym trader pointed out, Bitcoin whales are currently buying
into BTC’s price action and could be hinting at a future relief
bounce. The trader used data provided by Material Indicators to
show what the different investors’ classes are doing while BTC
records losses. As seen below, investors with bid orders of about
$100,000 (purple in the chart below) have increased their buying
pressure as almost every other and smaller investor class sells
into this price action. This divergence could hint at a bounce as
these BTC whales often anticipate or create price trends. The
pseudonym trader explained: Whales (purple) are market buying while
#bitcoin price is flat. Historically, purple is the most important
class for future price action. Clear divergence, hopefully it will
play out this time. Bitcoin whales (brown in the chart) also saw a
small uptick in buying orders as BTC returns to the area of around
$20,000. This investor class has been mostly dormant in the current
market environment, but their recent involvement highlights the
importance of BTC’s current levels. In that sense, Material
Indicators records massive bid orders for BTC’s price around this
area from $19,900 to $20,000. There are over $20 million in bid
order on these levels alone with an additional $6 million at around
$19,500, and over $10 from $19,000 to $19,000. In other words,
there seems to be enough liquidity for Bitcoin to hold at its
current levels for the time being. Can Bitcoin The Bitcoin Bulls
Score A Green Monthly Candle At higher timeframes, additional data
provided by Material Indicators records an important liquidity zone
between $17,000 and $20,000. Large market participants could
attempt to push down the price to fill these orders which could
hinder the bulls’ attempts to save the monthly candle. Analysts
from Material Indicators wrote: Bulls are defending the 2017 Top,
but with one day to go it’s going to be almost impossible to print
a green Monthly candle. Still a chance for green on the Weekly.
Expecting volatility. One way or another, Bitcoin is going to
breakout or breakdown very soon. Related Reading | Extreme
Fear Remains: Recapping What’s Behind The Crypto Market Panic The
analysts expect a potential relief in the coming days after a
potential retest of the yearly lows. Any bullish thesis would be
invalidated if BTC loses $17,500. Trend Precognition is flashing a
pretty strong Long signal on the #BTC Weekly chart. Signal won't
print until the W candle closes, but indicates that we could see a
run at the 200 WMA this week. Happy to test the lows first. For me,
sub $17.5k invalidates. #NFA pic.twitter.com/hvs1as44qG — Material
Indicators (@MI_Algos) June 28, 2022
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