Bitcoin Stalls Amid Wall Street Opening; Watch for Whales Leveraging CPI Data
Summary:
Bitcoin (BTC) remained uncertain after the Wall Street opening on April 9 amid a warning that macroeconomic data could cause a further decrease in BTC prices. Despite efforts by bull traders, BTC failed to regain movement towards the current record high of $73,800. Material Indicators suggests that Bitcoin whales might be trying to lower prices to establish new long positions, coinciding with the release of the U.S Consumer Price Index (CPI). Meanwhile, Bitcoin exchange-traded funds (ETFs) are facing increasing pressure, with a significant outflow primarily influenced by the Grayscale Bitcoin Trust (GBTC).
Despite the Wall Street opening on April 9, Bitcoin (BTC) remained noncommital, signalling a potential decrease in BTC value due to external macroeconomic factors. As Wall Street commenced, the BTC/USD dropped under $69,000, as seen in data from Cointelegraph Markets Pro and TradingView. Despite efforts, bull traders are struggling to regain traction towards the existing record high of $73,800.
Material Indicators, a resource for trading, pointed towards Bitcoin whales who may be attempting to lower prices to establish fresh long positions. This maneuver is set to coincide with the upcoming April 10 release of the U.S Consumer Price Index (CPI) print. This tactic of exploiting economic reports has been observed frequently, said Material Indicators on X (formally known as Twitter). If the Core Inflation figures on Wednesday are significant, they could potentially stretch the descending move. However, it has been noticed in such situations that whales often long the dip and exploit the upward liquidity void they created for a swifter upward movement.
Material Indicators/X's accompanying chart showed a solid wall of bid liquidity located at $66,500 on Binance, the world's largest exchange. Renowned trader Rekt Capital commented, "At present, Bitcoin is veering away from this blue Range High ($71300). Bitcoin is wedged between the former all-time highs of $69,000 (support) and the two-week-old highs of $71300 (resistance). There's room for consolidation in this scenario.''
In the meantime, the Bitcoin exchange-traded funds (ETFs) continue to face mounting pressure. Cointelegraph reported a significant outflow of $200 million on April 9, primarily influenced by the Grayscale Bitcoin Trust (GBTC). This unexpected outflow had left the market observers surprised, and the early data for April 10 indicated the acceleration in the GBTC outflows. According to the estimates shared on X by Daan Crypto Trades from the crypto intelligence firm Arkham, the outflows were around 6,200 BTC ($434 million), the highest in dollar terms for several weeks.
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Published At
4/9/2024 5:46:31 PM
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