Bitcoin (BTC) traded in an increasingly tight range on September 6 as bets on an impending breakout mounted.
Futures Giant Binance Absorbs BTC Spent
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair held below $20,000 for the fourth day in a row with the bulls failing to break resistance.
While many wondered when and how the latest phase of consolidation would end, two popular social media traders noticed an ongoing accumulation trend by an unknown large-scale Binance futures trading entity.
With retail investors selling off, that entity had spent several days soaking up liquidity, and the result was probably obvious.
“Incoming bounce,” Il Capo of Crypto predicted in part of an update on the phenomenon, describing the entity’s long BTC position as “massive” and “easily” worth 30,000 BTC or more.
And even more. Big long position there. Massive.
Bounce-incoming. https://t.co/ENOo2HLCXv pic.twitter.com/OiaTagLzZP
— il Capo Of Crypto (@CryptoCapo_) September 6, 2022
And even more Great long position there. Massive.
Incoming bounce.
“There is a lot of interest at $19,650 in Binance futures,” continuous the JACKIS business account”.
“We’re seeing positions get filled, price goes out, goes up, then a new sell wave comes in, hits new orders again and repeats. It looks like someone is piling hard.”
Binance orderbook data uploaded to Twitter by on-chain monitoring resource Material Indicators, meanwhile, showed resistance building above Sept. 6.
On the other hand, Crypto trader Tony warned that altcoins were outperforming Bitcoin’s intraday gains, calling for caution. Ethereum (ETH) was up 4% on the day before the September 15 Merge event.
“Bitcoin isn’t moving while Ethereum and altcoins are moving, which makes sense as people try to take advantage of the upcoming merger,” tweeted.
“But these movements usually end up in a landfill, when this happens. So be cautious.”
The dollar keeps the pressure
On a macroeconomic level, the dollar was once again the main player, reaching new multi-decade highs against a basket of currencies from its trading partners.
The US Dollar Index (DXY) topped 110.55 points on the day before consolidating again, further tearing apart the Euro and Yen in the process.
GM fam. ☕️
This week is all about the $DXY.
If this rising wedge breaks down, we should get short-term relief for #stocks and #crypto.
Testing resistance now. $BTC $ETH pic.twitter.com/AUoQGaL14f
— Justin Bennett (@JustinBennettFX) September 6, 2022
GM fam. ☕️
This week everything revolves around $DXY.
If this rising wedge breaks, we should see short-term relief for stocks and cryptocurrencies.
Testing the resistance now.
In a stark outlook for the year ahead, popular macro analysis account Fejau forecast continued DXY strength as the European energy crisis unfolded.
The Federal Reserve, according to explained in a lengthy Twitter thread on September 5, he would face such a strong dollar that it would need to be artificially tamed.
“We are about to experience a sovereign debt crisis caused by the European energy crisis, a climax to the 100-year expiration date of fiat money,” he summarized.
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