Bitcoin Price Not at Lows, Data Shows Whale Orders Hit 2-Year Low

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Bitcoin (BTC) is not about to bottom just below $17,000, new analysis warns as supply liquidity dries up.

In post-Christmas social media posts, on-chain analytics resource Material Indicators reported waning interest in protecting the current BTC price range.

Binance’s order book leaves little to cheer about

With volatility still largely absent from Bitcoin markets, analysts are keeping a close eye on what might happen at this week’s annual close.

The closing price of BTC/USD on December 31 will also mark the conclusion of the weekly and quarterly candles, and any flash volatility could turn 2022 into a nightmarish bear market year.

As Cointelegraph reported, the pair is currently down around 60% year-to-date, while it is down 76% from its last all-time high in November 2021.

That may not be enough to cap the bear market just yet, various analysts have warned; and now the backlog data seems to underline the potential for further losses.

Nothing illustrates the sentiment of a price level like liquidity, and there doesn’t seem to be much sentiment for that price level to bottom out, Material Indicators commented on a chart of notebook activity. of BTC/USD orders on Binance.

BTC/USD order book chart (Binance). Source: Materials Indicators/Twitter

On December 27, another article argued that there was not much to cheer about given current order book volumes, which also showed that high-volume traders were reducing their exposure.

BTC range prices have a lot to do with declining interest in whales, research firm Santiment continued on the matter.

Another chart highlighted what Santiment said was a correlation between large trades of $1 million or more and overall BTC price strength. These transactions are now at their lowest level since December 2020.

BTC/USD annotated chart. Source: Santiment/Twitter

If prices continue to fall and a spike occurs, that would be a historically bullish signal, he added.

BTC Price Drop Ahead

In its Just Crypto year-end summary and forecast, trading firm QCP Capital had more bad news for crypto hodlers.

Related:Bitcoin hodlers see record unrealized loss of 8 million BTC, data shows

Bitcoin and Ether (ETH) are expected to begin a downward Wave 5 extension to start 2023, analysts say, in line with risk assets and US Dollar and Bonds regaining strength.

We continue to expect any large rally in BTC to come under significant selling pressure, they wrote, describing Bitcoin as trading alongside ETH.

An additional correlation of its own centers around the ARK Invests ARK Innovation Exchange Traded Fund (ARKK).

Price action ARKK tops 2-month BTC, warning of BTC price declines to come, QCP added alongside a comparison chart.

ARKK vs BTC/USD chart (screenshot). Source: QCP Capital

The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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