Bitcoin Volatility Eases, As Traders Eye Market Indicators and Whale Movements
Summary:
In the run-up to October 6, potential for a Bitcoin (BTC) price decrease has become a concern as the cryptocurrency's volatility subsides. Following a failed attempt to retest the $28,000 mark, BTC has remained stable. The renowned trader, Daan Crypto Trades, highlights an ongoing conflict between two significant moving averages (MAs) that may shape the trend for the remainder of October. There's a possible squeeze between short and long positions due to increasing open interest across exchanges. Meanwhile, monitoring platform Material Indicators examines whale-trader behaviors, underlining seemingly contradictory actions across different classes of whales.
In the lead up to October 6, the potential for Bitcoin (BTC) price decreases has re-emerged as the cryptocurrency's volatility diminishes. According to data from Cointelegraph Markets Pro and TradingView, BTC/USD has had a relatively stable 24 hours following a failed attempt to retest the $28,000 mark. Bitcoin, the world's largest digital currency, is once again edging towards $28,000 prior to Wall Street's open, but fears over potential future losses have grown among traders.
Well-known crypto trader Daan Crypto Trades has been closely monitoring the ongoing battle between two significant moving averages (MAs) over daily periods. He suggests that whichever Day-200 MA (Purple) or Day-200 EMA (Blue) first gives way will likely set the trend for the rest of October. With increasing open interest (OI) across various exchanges, he also anticipates a potential squeeze scenario between short and long positions.
As reported by CoinGlass, liquidations for both long and short BTC positions remained relatively minor through October 6. Meanwhile, Material Indicators, another monitoring platform, has been observing the week's whale-trader behaviors, highlighting the seemingly contradictory actions by various "classes" of whales. According to their analysis, despite an increase in exposure from orders worth between $100,000 and $1 million—usually a significant driver of spot price action— a broader uptrend has failed to materialize.
Furthermore, data indicates other whales have net sold nearly $60 million across the same period. Material Indicators suggest this could be linked to the possible liquidation of assets from the now-defunct exchange FTX. In terms of exchange-based configurations, trading account Exitpump has spotted potential preparations for a liquidity boost beneath $27,400.
Investment and trading come with inherent risks, and it is recommended that individuals conduct their own research prior to making any decisions.
Published At
10/6/2023 10:56:13 AM
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