Bitcoin (BTC) briefly touched $ 43,000 before the Wall Street open on January 6, while a new market analysis offered bad news for bears.
“Very similar to USD 30,000”
Data from Cointelegraph Markets Pro and TradingView followed the BTC / USD pair in its range after reaching its lowest levels in almost six weeks.
Amid the six-month lows and a feeling of apprehension on social media, analysis investigating traders’ behavior concluded, however, that not everything is as bad as it seems.
In a series of posts of the day, the popular Twitter account Byzantine General argument that despite all the downsides, the sellers are practically out of stock.
“This is starting to feel very similar to the 30k range now,” he summarized.
“The imbalance between the supply and demand side is freaking out. Spot deals continue to be filled with new orders, while the supply side fails to repopulate in significant capacity.”
Bitcoin’s order books involve both “active” and “passive” flows, and it is the old trading point that naturally sets the trajectory at any given time.
Overnight, when the BTC / USD pair lost nearly 10% in hours, the bears gradually lost momentum and, at current levels, are desperately fighting active buyer interest.
“At this point it’s a waiting game … Because the price is sitting on top of a thick offer and the active (selling) stream has given up.”, continued Byzantine General.
Going forward, the status quo cannot last, as those buyers will want to move the market by raising their bids. This theoretically should cause a snowball effect to “cut the book like butter”.
“This is the feeling I have in the 30k range and I am getting it again,” he added.
“Maybe there is a little less buying intent left than before, but I still think this range is probably accumulation and not redistribution.”
In response, fellow trader Pentoshi, who has taken a remarkably cool outlook on the future of the Bitcoin cycle since November, warned that it wasn’t just order book signals.
“Live, die, repeat”
November’s all-time highs of $ 69,000 saw the start of long-term holder selling, this is common with all bull cycles.
But nevertheless, the fleeting nature of the “cap” in 2021 has led many to assume that the actual peak of the cycle has not yet arrived.
Meanwhile, however, the similarities to the $ 30,000 bottom of the summer were undeniable to market participants that day.
#Bitcoin Update
$ 42,333 was the first wick low and retest of key trendline. Today we retesting the wick low while trendline is at $ 39.9
15min pot bull div, SL below $ 42,333
Relcaim or one more month of similar choppy PA like at $ 30k. Revisit the thread. https://t.co/TT9iPkSau8 pic.twitter.com/MUCzzqU2GA
– AN₿ESSA (@ Anbessa100) January 6, 2022
Bitcoin update
$ 42,333 was the first wick low and a retest of the key trend line. Today we retest the low wick while the trend line is at $ 39.9
Bullish divergence from 15min, SL bottom below $ 42,333
“It’s amazing how BTC is in a deja vu from June to July. Live, die, repeat”, tweeted statistician Willy Woo.
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