Tuesday, 27 February 2024

Crypto News

Bitcoin gets ‘whale games’ warning as BTC price eyes $40K into US data

Bitcoin gets ‘whale games’ warning as BTC price eyes $40K into US data

Bitcoin (BTC) held momentum at $38,000 on Nov. 29 as analysis warned over market corrections.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin meets macro data, Fed’s Powell at key price point

Data from Cointelegraph Markets Pro and TradingView showed BTC price trajectory continuing to aim for new 18-month highs.

After matching current highs the day prior, the largest cryptocurrency surprised by keeping a grip on higher levels as futures markets hit $39,000.

Already a topic of debate, the excitement on derivatives led some to caution that large-volume traders could still leave late long positions stranded at the top.

In commentary overnight, Keith Alan, co-founder of monitoring resource Material Indicators, told traders to be wary of these “whale games.”

“Earlier today, some ask liquidity at $38k was pulled to open the door to $38.5k. Don’t allow yourself to think that was a friendly whale giving you boost. That was a Killer Whale trying to FOMO you in,” he wrote about the initial trip past $38,000.

Alan continued that words due Dec. 1 from Jerome Powell, chair of the United States Federal Reserve, may provide an external BTC price catalyst that could even bring $40,000 into play.

Whales, however, would be spying on a key level at which to sell off.

“My assumption is that they will continue to do so until there is enough to dump into,” he forecast.

“That doesn’t mean that # JPow’s speech can’t be the catalyst that sends price past $40k, especially as we see bid liquidity coming in above $37.5k, but if you aren’t prepared to sweep the local lows between now and then you haven’t been paying attention to how these Whale Games tend to play out.”

BTC/USDT order book liquidity. Source: Keith Alan/X

An accompanying chart showed order book sell-side liquidity concentrated at $38,500 — a level yet to be challenged at the time of writing.

Others remained confident that further short-term upside was possible and even likely.

Analyzing current market composition, popular trader Skew concluded that volume was all that was missing for a breakout toward the $40,000 watershed.

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As Cointelegraph reported, prior to Powell’s speech, key U.S. macro data will lend extra…

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