A Binance futures entity has been accumulating for days, and the result could be quite the squeeze, analysts believe.
Bitcoin (BTC) traded in an increasingly narrow range on Sept. 6 as bets piled in over an imminent breakout.
Binance futures giant sucks in spent BTC
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD staying under $20,000 for a fourth straight day with bulls failing to crack resistance.
As
many wondered when and how the latest consolidation phase would end,
two popular social media traders noticed an ongoing accumulation trend
by an unknown large-scale Binance futures trading entity.
With retail investors selling, that entity had spent several days soaking up the liquidity, and the result was likely obvious.
“Bounce
incoming,” Il Capo of Crypto predicted in part of an update on the
phenomenon, describing the entity’s long BTC position as “massive” and
“easily” worth 30,000 BTC or more.
“There is quite an interest at 19,650$ at Binance futures,” fellow trading account JACKIS continued.
“We
are seeing the positions filled, the price goes, up, then a new wave of
selling comes in, hit the new orders again and repeat. Looks like
someone accumulating hard.”
Order book data from Binance uploaded to Twitter by on-chain monitoring resource Material Indicators meanwhile showed resistance building overhead into Sep. 6.
Elsewhere,
trader Crypto Tony warned that altcoins were exceeding Bitcoin’s
intraday gains, something that called for caution. Ethereum (ETH) was up 4% on the day ahead of the Sep. 15 Merge event.
“Bitcoin
isn't moving while Ethereum and Altcoins move, which makes sense while
people try and make the most of the upcoming merge,” he tweeted.
“But these moves usually end in a dump, when this happens. So be cautious.”
Dollar keeps up pressure
On
macro, the U.S. dollar was the major focus once again as it hit new
multi-decade highs against a basket of trading partner currencies.
Related: BTC price sees new $20K showdown — 5 things to know in Bitcoin this week
The
U.S. dollar index (DXY) passed 110.55 on the day before returning to
consolidate, laying further waste to the euro and yen in the process.
In a stark outlook for the coming year, popular macro analytics
account Fejau forecast ongoing DXY strength as the European energy
crisis unfolded.
The Federal Reserve, an extensive Twitter thread explained on Sept. 5, would face such dollar strength that it would be necessary to tame it artificially.
“We're
about to experience a sovereign debt crisis caused by the Europe energy
crisis, all a capstone on the 100 year fiat expirement,” it summarized.
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views and opinions expressed here are solely those of the author and do
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investment and trading move involves risk, you should conduct your own
research when making a decision.
source link : https://cointelegraph.com/news/traders-say-bitcoin-price-bounce-is-overdue-after-a-massive-btc-long-position-appears
