Bitcoin’s decision was uncertain following the April 9 opening of the Wall Street market, as a cautionary note about potential macroeconomic data causing a drop in its value was issued.
Analysis: Bitcoin whales may leverage “hot” CPI print
Based on the data from CryptoMoon Markets Pro and TradingView, Bitcoin’s value against the US dollar fell below $69,000 when Wall Street reopened.
The bulls failed to regain traction and reach new heights closer to their record high of $73,800.
Examining the order book information, Material Indicators noted potential whales trying to push down prices to buy more in preparation for new long positions. According to their analysis, posted on X (previously Twitter), they identified this as a strategic move, with the significant event being the upcoming US Consumer Price Index (CPI) report release on April 10.
“We’ve seen this behavior frequently around economic reports,” it wrote.
“If Wednesday’s Core Inflation numbers are hot, they’ll likely be able to extend the downside move. However, what often happens in these scenarios is that whales long the dip and exploit the upside liquidity void they just created for a relatively quick move up.”
A chart that came with the data displayed the closest point for ask bids on Binance, the largest global exchange, was at $66,500.
Currently, Bitcoin is not holding the price within the blue range high of $71,300 on its weekly chart, according to well-known trader Rekt Capital.
“Bitcoin is thus sandwiched between the old All Time Highs of $69000 (support) and the highs from two weeks ago of $71300 (resistance). There’s scope for consolidation here going forward.”
GBTC outflows keep mounting
Pressure meanwhile continued among the spot Bitcoin exchange-traded funds (ETFs).
According to CryptoMoon’s latest update, approximately $200 million left the crypto market on April 9. The majority of this amount came from the Grayscale Bitcoin Trust (GBTC) experiencing a significant outflow.
Market watchers were taken by surprise as the data from April 10 indicated a significant increase in outflows from GBTC, with the trend gaining momentum.
According to information from cryptocurrency intelligence firm Arkham and as disclosed by well-known trader Daan Crypto Trades, the approximated Bitcoin amount comes up to around 6,200 coins, which translates to roughly $434 million – the biggest dollar value in recent weeks.
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2024-04-09 18:01