At the opening of Wall Street on April 22, Bitcoin (BTC) failed to continue its recovery following the halving event due to a large number of programmed trading algorithms selling off the cryptocurrency.
Bids and asks squeeze BTC price
The prices of Bitcoin, as indicated by data from CryptoMoon Markets Pro and TradingView, began to lose momentum following their weekly peak of $66,546 on Bitstamp.
Although Bitcoin showed signs of recovery following last week’s slump, it encountered significant opposition during the day, resulting in more sellers than buyers.
“Up until now, the bidding in the spot market has primarily been an isolated individual against a large pool of algorithmic sellers. The trading could remain uneventful for the time being.”
Previously, Skew observed that the difference between the spot price and the liquidity level was narrowing down – a common tactic used to attract investors.
On April 22nd, according to the most recent information from monitoring tool CoinGlass, a cluster of bids emerged in the price range between $64,000 and $65,500.
A similar picture involved fresh ask liquidity, which was stacked between $66,500 and $67,750.
“Time will tell if they’re spoof orders,” Skew added.
Meanwhile, analyst Matthew Hyland shared that a significant moving average was maintained at the most recent weekly closing price.
Since October 2023, Bitcoin’s 10-week moving average (SMA) has acted as a crucial line of defense for bull markets. It has effectively boosted the market during this period.
The 10-week SMA stood at $65,686 at the time of writing.
One more long liquidity hunt?
The behavior of Bitcoin’s price aligned with the hypothesis suggested by well-known trader and analyst Credible Crypto this morning.
The value of Bitcoin in relation to the US Dollar (BTC/USD) might dip again to close out long positions, according to him. He pointed out that Open Interest (OI) was on the rise.
If the upward trend fails to gain momentum at the start, I believe we may see a development similar to this.
“Decent OI ramp on LTF here since this move up began so a move back down to wipe longs before the ‘real’ pump would not surprise me.”
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2024-04-22 19:06