Bitcoin price is steadily moving around its current range in late 2023. Recent data sheds light on the current market structure and what could trigger an extension of bullish momentum.
At the time of writing, Bitcoin (BTC) is trading at $37,900 with a 1% loss over the past 24 hours. Over the previous week, the cryptocurrency traded in the green as other assets saw slight losses except Solana (SOL) and Dogecoin (DOGE).
Big day for the price of Bitcoin: what the whales are predicting
Data shared by crypto analysis platform Hardware indicators watch the current order book status of the Binance trading platform. Examination of this order book by the world’s largest crypto often reveals trends and clues to anticipate price action.
Today, Bitcoin faces two potentially very volatile events: whales will fight for the monthly close of candles and the United States will reveal macroeconomic data. Thus, the cryptocurrency could finally surpass its current levels or retest support.
Data from hardware indicators, as seen in the chart below, shows an increase in buy orders for Bitcoin whales and “mega” whales (purple and brown on the chart, respectively). This buying pressure is unlikely to translate into a rally, as these investors prioritize market efficiency.
So, they place small orders on exchanges to reduce slippage, which drives the price into a range. The good news is that this behavior is often positive for the price of BTC by attracting, according to Material Indicators, “supply (buy) liquidity.” »
Once there is enough liquidity in the order book, whales can sell their positions and avoid a downward slide. The company said:
The more they attract, the more they can pour out while minimizing slippage. Over the past 7 days, purple whales have purchased approximately $16 million worth of #BTC on the market and in 4 hours distributed approximately $42 million to the bidders they lured into the range. Whether you are bullish or bearish, there are #trading opportunities ahead as this game appears to be in extended play mode.
In this sense, traders should expect further sideways price movements as whales and mega-whales invade the market. Meanwhile, $40,000 and $35,000 are two critical areas that could portend a change in current market dynamics.
Cover image from Unsplash, chart from Tradingview