Bitcoin (BTC) headed towards $21,000 on Nov. 4 as the bulls tried to regain lost ground.
Data from Cointelegraph Markets Pro and TradingView followed the BTC/USD pair as it rose overnight to set new daily highs of $20,683 on Bitstamp.
Sell wall at $21,000 turns out to be ugly
Although so far this is a lower high on the hourly charts compared to the peaks on Nov 1-2, the move served to recoup losses, which came on the heels of the Fed’s decision to hike once more. interest rates.
However, the chances of breaking above $21,000 were limited as sellers were piling orders at that level.
“If you want to sell, open your orders slightly below $21,000”, wrote Onchain Edge, a contributor to the CryptoQuant analytics platform, in part of a tweet alongside Binance order book data.
Material Indicators, which provides data from the order books, further noted that buy-side orders had been fickle friends in terms of support, moving in and out of the order book.
“This is why I don’t trust the new, heavily weighted Bitcoin buy walls,” commented.
On the other hand, Maartunn, also a CryptoQuant contributor, added that market sell orders “remain dominant” in the current setup.
“Nothing has really changed apart from a lower price of Bitcoin,” read part of the comments on Twitter that day.
Equity analyst: ‘The big guys are piling up’
Beyond cryptocurrencies, one analytics source pointed to a potential upside for risk assets in general in the current landscape.
The Smart Money Confidence (SMC) sentiment gauge, traditionally used for stocks, is now at “all-time highs,” Game of Trades noted.
The high SMR scores coincide with an outperformance of the S&P 500, and given Bitcoin’s correlation with traditional markets, there could be reason for optimism following its current reading of 0.61.
The SMC hit highs of 0.78 in late September, so a bounce is needed going forward.
“The big boys are hoarding. Smart money confidence is at historically high levels,” summarized an optimistic Game of Trades.
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