Wednesday, 28 February 2024
Trending

Crypto News

BTC price sets new 19-month high in ‘choreographed’ Bitcoin whale move

BTC price sets new 19-month high in 'choreographed' Bitcoin whale move

Bitcoin (BTC) returned above $42,000 on Dec. 5 as analysis remained suspicious of market manipulation.

BTC/USD 1-hour chart. Source: TradingView

Analysis: New Bitcoin bids not “organic”

Data from Cointelegraph Markets Pro and TradingView showed a BTC price rebound taking BTC/USD to highs of $42,498 on Bitstamp.

These beat the 19-month peak set the day prior, with retracements being short lived amid a general atmosphere of excitement throughout crypto.

As Bitcoin continued to reclaim ground lost in mid-2022, however, warnings over the rally’s sustainability continued to flow in. These centered on the behavior of large-volume traders, also known as whales.

In a dedicated thread about the phenomenon on X (formerly Twitter), trading resource Material Indicators explained that from order book liquidity cues, it appeared that these traders could be deliberately coordinating higher prices in order to sell into an uptrend with minimal slippage.

The more liquidity available near the intended selling point, the better value a major sell-off would bring.

“We saw the exact game played over the wknd with a $50M buy wall at $35k, and it often works. Now we have $50M stacked at $38.5k,” Material Indicators noted, calling current order book action a “strategically choreographed distribution game.”

The analysis reasoned that a return to $38,500 was unlikely, but that new blocks of bid liquidity — including one at $41,500 — were not “organic.”

That said, upside continuation could easily form the norm into next year, as a sense of anticipation over both macroeconomic changes and a United States approval of its first Bitcoin spot price exchange-traded fund (ETF) sets the tone.

“With BTC liquidity strategically moving around the game board we are likely to see this rally extend,” Material Indicators forecast.

“Optimism around the Dec FED rate decision and Jan ETF decision can push things higher and fuel euphoria, so be prepared for what comes after that.”

BTC/USDT order book liquidity data. Source: Material Indicators/X

$48,000 forms next optimistic BTC price target

Other market commentators eyed similarly bullish short-term BTC price signals.

Related: Bitcoin short-term holder sales near $5B as profit-taking mimics 2021

Popular trader Daan Crypto Trades noted declining open interest during the consolidation phase which preceded the day’s Wall Street open.

Click Here to Read the Full Original Article at Cointelegraph.com News…