Bitcoin (BTC) is not about to bottom just below $17,000, new analysis warns as supply liquidity dries up.
In social media posts after Christmas, on-chain analytics resource Material Indicators noted waning interest in protecting BTC’s current price range.
Binance Order Book Doesn’t Leave ‘Much to Get excited about’
With volatility still absent from the Bitcoin markets, analysts are closely watching what may happen at the annual close this weekend.
The closing price of the BTC/USD pair on December 31 will also mark the conclusion of the weekly and quarterly candles, and any sudden volatility could turn 2022 into a nightmare bear market year.
As Cointelegraph reported, the pair is currently down close to 60% year-to-date, while off its latest all-time high in November 2021, it has lost 76%.
Several analysts have warned that this might not be enough to end the bear market, and now the Binance order book data seems to underscore the possibility of further losses.
“Nothing illustrates sentiment for a price level quite like liquidity, and there doesn’t seem to be much sentiment for this price level to be the bottom,” commented Material Indicators on a chart of BTC/USD order book activity on Binance.
The day before, another article affirmed that there wasn’t “much to be excited about” given the current order book volumes, which also show that high-volume traders are reducing their exposure.
“BTC price swing has a lot to do with declining interest in whales,” keep going the research firm Santiment on the subject.
Another chart highlighted what Santiment said was a “correlation” between large transactions of $1 million or more and overall BTC price strength. Those transactions are now at their lowest levels since December 2020.
“If prices continue to decline and a rally occurs, that would be a historically bullish sign,” he added.
“Lower BTC prices are coming”
Meanwhile, in its “Just Crypto” year-end forecast and roundup, trading firm QCP Capital had more bad news for cryptocurrency enthusiasts.
Both Bitcoin and Ether (ETH) should begin a “wave 5 extension to the downside” to start 2023, according to analysts, in line with risk assets and the US dollar and bonds seeing renewed strength.
“We continue to expect any big rally in BTC to be met with significant selling pressure,” they wrote, describing Bitcoin as “lock-step trading” with ETH.
Another proprietary correlation focused on ARK Invest’s ARK Innovation (ARKK) ETF.
“ARKK price action is leading BTC for 2 months, warning of lower BTC prices to come,” QCP added alongside a comparative chart.
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