Bitcoin (BTC) sought to rematch 18-month highs into Nov. 21 as order book activity gave one analyst a sense of deja vu.
Whale games conjure Bitcoin’s Q1 2023
Data from TradingView showed BTC price momentum building to top out at $37,770 the day prior.
Now circling $37,400, Bitcoin remained in a range that had also characterized the second week of the month.
For on-chain monitoring resource Material Indicators, however, the market was more akin to Q1 this year — the period that marked the start of Bitcoin’s recovery from post-FTX lows.
Analyzing order book data, it suggested that a major liquidity provider, which it informally called the “Notorious B.I.D.” at the time, could be shaping bid support once again.
Specifically, bid liquidity had come and gone at $33,000 “7 times in the last 30 days,” it told X (formerly Twitter) subscribers.
“I can’t confirm whether this is the entity I named Notorious B.I.D. back in Q1, but I can tell you we’ve seen this game played before.”
An accompanying snapshot of BTC/USDT liquidity also showed sellers lining up at and immediately below $38,000.
Among whales, it was the largest order class — between $1 million and $10 million — which was the only active cohort, with others unanimously decreasing exposure through the week.
Commenting on the situation, Material Indicators co-founder Keith Alan argued that the entities behind the buy orders could be more organized than merely large-volume speculators.
The bid wall at $33k disappeared AGAIN and Brown MegaWhales bought resistance at the local top AGAIN.
If you think MegaWhales have an issue with timing, re-read the thread I shared from @MI_Algos.
No telling how long they keep this game going. Of course, I have my theory about… pic.twitter.com/sEZuvSgWIs
— Keith Alan (@KAProductions) November 20, 2023
“Swift breakdown” could follow tap of $40,000
Forecasting what could come next, meanwhile, Michaël van de Poppe, founder and CEO of trading firm Eight, refused to take $40,000 off the table.
“Bitcoin continues to push higher and higher. Making higher lows, and attacking the resistance for the fourth time,” he commented on overnight events.
“Wouldn’t be surprised with a breakout upwards to $40K and then a swift breakdown again. Keep on buying the dips!”
Popular analyst Matthew Hyland cautioned that the relative strength index (RSI) could be at risk of printing a bearish divergence with price should the latter fail to pass current 18-month highs just below $38,000.
At the time of writing, bulls were still unable to summon the required momentum.
#Bitcoin still all going to plan
Price and RSI are moving up
Both will need to put in higher highs to prevent any opportunity at bearish divergence
— Matthew Hyland (@MatthewHyland_) November 21, 2023