As a seasoned researcher with over a decade of experience in the cryptocurrency market, I’ve seen my fair share of price swings and market manipulations. The recent surge of Bitcoin to $68,000 is reminiscent of the wild west days, but with a more sophisticated cast of characters playing their roles.
Bitcoin (BTC) circled $68,000 on Oct. 16 after setting new 11-week highs into the Wall Street open.
BTC price gyrates around 11-week highs
Based on information from CryptoMoon Markets Pro and TradingView, it appears that the upward trend for Bitcoin has restarted after the bulls surpassed the high point of a misleading “short squeeze” which occurred the previous day.
The level of volatility became apparent, and upon examining the current market order book, well-known trader and analyst Skew issued a caution about potential manipulation.
“Very active spoofing going on here today,” he wrote on X about the Binance spot market.
“1% – 2.5% gap between ask & bid liquidity so without passive flows there’s room for taker driven volatility today.”
As a researcher examining the derivative market, I’ve observed that positions held later than $67,000 could potentially trigger a domino effect of liquidations, known as a ‘liquidation cascade’.
Most of the purchasing activity originated from traders on Binance and Bitfinex during the hours approaching the opening of Wall Street, as they followed trends set the previous day.
The data collected from tracking Resource Material Indicators shows a significant rise in the extent of exposure for both large and small investors.
FireCharts grouped Cardiovascular Disease (CVD) cases showed that all categories of orders placed Bitcoin, as reported to their X number of followers, using one of its unique trading instruments.
“Bid liquidity is stacking above $66k and $70k is coming into focus. Do BTC Bulls have enough momentum to make a sustainable run to ATH territory?”
Some were more than confident that sellers would capitulate to the return of the bull market.
As an analyst myself, I’d like to mention that among my observations was Michaël van de Poppe, a crypto trader, analyst, and entrepreneur, who predicted that Bitcoin’s price discovery would occur within a few weeks from his statement.
“Bitcoin is aiming for a new all-time high,” he predicted on the day.
“The trend has switched. I think we’ll see this happening in the next 3-4 weeks that we’ll see that all-time high and likely $90K before EOY.”
Dollar surge makes Bitcoin traders nervous
Interestingly enough, Bitcoin’s value relative to the U.S. dollar (BTC/USD) increased simultaneously with the strengthening of the U.S. dollar, which is unusual because these two typically move in opposite directions.
On August 8th’s levels, the U.S. Dollar Index (DXY) hit 103.45, marking a high not seen since that date. Simultaneously, the value of Bitcoin (BTC/USD) experienced a significant surge of around 12%.
Considering the implications, crypto social media was abuzz with caution.
Max Price, a well-known trading account, predicts that the monster we’ve been dealing with will soon return, and the DXY index may regain control of all its major moving averages within the next day or two.
DXY scores of 110 or more could come within a “relatively quick period of time,” it suggested.
The post suggests staying alert since Bitcoin might be experiencing a price manipulation tactic known as “exit pumping”. It’s important to note that this is just one potential reason for Bitcoin’s current strength.
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2024-10-16 18:17