Bitcoin flirts with bid liquidity as BTC price approaches new 3-week lows
Bitcoin (BTC) drifted towards heavy liquidity around the opening of Wall Street on February 13 as the dust settled on US regulatory news.
BTC traders spread bids lower
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD at $21,476 on Bitstamp, nearly matching the weekend’s three-week low.
As analysts expected a “choppy” day ahead of key US macroeconomic data, market nerves were heightened by news that blockchain firm Paxos was being sued by the Securities and Exchange Commission (SEC).
The BTC spot price action thus came increasingly close to a large area of bid liquidity in the Binance order book, which Maartunn, a contributor to the on-chain analysis platform CryptoQuant, dubbed “The Great Wall of China.”
“‘The Great Wall’ (price support) of Bitcoin is placed at $21,500. This morning, some bids were filled. Thereby, the strength of the wall has been reduced from $25 ~ $27 million to $19 million,” he noted.
Maartunn used data from monitoring resource Material Indicators, which in its own commentary revealed that thinning bids near the top of the liquidity cloud were being repositioned lower.
In the short term, eyes were on the February 14 consumer price index (CPI) to move risk assets en masse.
“Thoughts remain the same since the crash. I don’t see any bullish swings lasting until 20.3K liquidity is taken out,” popular trader Crypto Chase wrote in a recent Twitter update.
“Today will most likely be choppy and the CPI should make the next ‘move’ tomorrow. With that said, my focus today will be on intraday $ES trades.”“
ONE examination of other trading account Daan Crypto Trades, meanwhile, showed roughly equal expectations for the market to go higher or lower by CPI.
“This is the fourth time in a row that a Sunday pump or dump has quickly returned,” a separate post added on BTC price action overnight.
“As you probably know, this is a very common thing to see and a reason to always be skeptical of seeing weekend moves on BTC.”
Equities, dollar trough before CPI
US stocks opened the week modestly higher, with the S&P 500 and Nasdaq Composite Index up 0.4% and 0.6% respectively.
Related: First Ever Weekly Death Cross – 5 Things to Know in Bitcoin This Week
The US dollar index (DXY) was flat at the time of writing, having spent the week before consolidating following a solid rally.
“A big day tomorrow with CPi data release at 13:30 GMT. DXY price seen around top of parallel channel with decisive break anyway to determine next big move for Btc Ethereum and other Altcoins,” Matthew Dixon, Founder and Managing Director director of crypto rating platform Evai, in summary about the prospects.
“Preferred direction is down for Dollar, which will be +ve for BTC.”
An accompanying chart showed DXY on 4-hour timeframes
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
