Bitcoin Hits New 6-Week High As Ethereum Liquidates $240M More Shorts
Bitcoin (BTC) attempted to retake $21,000 on October 29 as weekend trading began on a strong basis.
Dollar lurks as BTC price rebounds
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it rebounded overnight to local highs of $21,078 on Bitstamp – enough to make new six-week highs.
The pair had seen a consolidation phase following its first trip to the $21,000 mark, the first time it had traded above $21,000 since September 13.
The subsequent retracement was modest in nature, Bitcoin not even testing $20,000 before reversing higher again.
At the end of the Wall Street trading week, BTC price action followed US stocks, the S&P 500 and the Nasdaq Composite Index which ended October 28 up 2.5% and 2.9% respectively.
In his latest Twitter update, popular Crypto trader and analyst Il Capo maintained an existing theory on how short-term price action would unfold.
“Same same,” he in summary next to a chart showing potential upside and downside target levels.
A cautionary macro note came from fellow trader John Wick, who warned that the US dollar may return to pressure risk assets.
“Now we’re looking to see if we get a green dot breaking across the track line there,” he commented on a chart of the US dollar index (DXY).
“If so, it’s a bad combination leading up to the Nov. 2 Fed announcement.”
Wick was referring to next week’s Federal Reserve announcement of rate hikes, expected to match September’s 0.75% increase.
ETH liquidations keep coming
Apparently still skeptical of bulls’ ability to produce further gains, trade liquidations were once again on the rise on the day.
Related: Bitcoin Weak Hands ‘Mostly Gone’ As BTC Ignores Amazon, Meta Stock Dips
Data from monitoring resource Coinglass showed the shorts burned off the return to $21,000, with the October 29 figure totaling $95 million at the time of writing.
In contrast, the day before had only $14 million in liquidated shorts, while October 25 and 26 combined delivered $661 million.
“Everybody in retail does the same thing and wonders why it never works,” trading account IncomeSharks wrote on Twitter, citing a Cointelegraph article about liquidations affecting Ethereum (ETH) shorts.
“Take up shorts at the bottom, take up liquidations at the bottom. Follow the herd and be slaughtered.”
ETH short liquidations on October 29 were already at $240 million at the time of writing and appeared to eclipse the previous day’s total.
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