Bitcoin (BTC) attempted to retake $21,000 on Oct. 29 as the weekend started off strong.
The dollar looms as the price of BTC bounces
Data from Cointelegraph Markets Pro and TradingView followed the BTC/USD pair as it rallied overnight to hit a local high of $21,078 on Bitstamp, enough to hit fresh six-week highs.
The pair had seen a consolidation phase after its first trip to the $21,000 mark, the first time it had traded above $21,000 since Sept. 13.
The subsequent pullback was modest as Bitcoin failed to even test $20,000 before rising again.
At the end of the Wall Street trading week, the BTC price trailed US stocks; The S&P 500 Index and the Nasdaq Composite Index ended October 28 up 2.5% and 2.9%, respectively.
In his most recent Twitter update, popular trader and analyst Il Capo of Crypto held to an existing theory on how the short-term price action would play out.
“As usual”, summarized next to a chart showing possible target levels on the upside and downside.
The macro note of caution came from another trader, John Wick, who warned that the US dollar could again put pressure on risk assets.
“Now we are watching to see if we get a green dot that breaks above the tracking line”, commented on a chart of the US Dollar Index (DXY).
“If so, that’s a bad mix leading up to the Fed announcement on November 2.”
Wick was referring to next week’s Fed announcement of an interest rate hike, which is expected to match September’s 0.75% rise.
ETH liquidations keep coming
Apparently still skeptical of the bulls’ ability to produce further gains, trader liquidations were once again on the rise on the day.
Data from monitoring resource Coinglass showed short contracts burned back to $21,000, with the count for Oct. 29 totaling $95 million.at the close of this edition.
By contrast, only $14 million of short positions had been liquidated the previous day, while on October 25 and 26 they combined $661 million.
“All the retailers do the same thing and wonder why it never works,” wrote the IncomeSharks trading account on Twitter, citing a Cointelegraph article on liquidations affecting Ethereum (ETH) shorts.
“Record short contracts in the fund, record liquidations in the fund. Follow the herd and get slaughtered.”
ETH short liquidations on Oct. 29 were already reaching $240 million at the time of writing and looked set to dwarf the previous days’ totals.
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