Bitcoin (BTC) made a welcome comeback after the Wall Street open on Sept. 28, as bulls clashed with whale-sized sellers.
Whales lurk at $20,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD gaining over $1,000 on the day to see highs of $19,656 on Bitstamp.
The move characteristically copied a rally in US stocks, with the S&P 500 and Nasdaq Composite Index rising 1.5% and 2.2%, respectively.
Now, the analysis warned that the area around $20,000 was still full of high-volume traders eager to continue making profits.
BTC/USD chart on major exchange Binance “shows mega brown whales capsize at BTC support to minimize slippage,” commented the Material Indicators analysis resource.
An attached snapshot confirmed most of the resistance lurking just below the $20,000 cap.
“Let’s see if $19,500 holds to set up another potential run into the R/S ~$20,000 trade zone,” Material Indicators added.
Meanwhile, on the downside, analyst Maartunn, a contributor to on-chain analytics platform CryptoQuant, noted a large area of supply interest between $18,000 and $18,500.
this was worth about $65 million to September 28, which could form a support cushion.
As Cointelegraph reported, the area below the $17,600 June low, by contrast, lacks supply support, opening up the possibility of a cascade to $12,000.
In terms of the strength of the current bounce, traders were skeptical, with the popular Cheds Twitter account warned about the exposure with “the bulls starting to celebrate”.
At the time of writing, BTC/USD was trading around the $19,500 mark.
The dollar collapses after last maximum of two decades
In macro, the story of the day was the UK central bank’s return to quantitative easing (QE) after the financial turmoil hit its forex and bond markets.
The Bank of England sparked an instant rally in GBP/USD after the pair hit record lows.
The US dollar, already coming off twenty-year highs, continued to slide.
The US Dollar Index (DXY) looked poised to return below 113 at the time of writing, down 1.5 points overall on the day.
“Looks like we will end the week strong for Bitcoin and stocks as we head into October,” reacted a hopeful IncomeSharks.
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