Bitcoin price takes higher but whales line up to sell BTC at $20K
Bitcoin (BTC) made a welcome comeback after Wall Street opened on September 28 as bulls met whale-sized sellers.
Whales await $20,000
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD rose over $1,000 on the day to see highs of $19,656 on Bitstamp.
The move characteristically copied a rally for US stocks, with the S&P 500 and Nasdaq Composite Index up 1.5% and 2.2% respectively.
Now analysis warned that the area of around $20,000 was still flush with large volume traders eager to continue taking profits.
BTC/USD chart on major exchange Binance “shows brown megawhales dumping into BTC support to minimize slippage,” analytical resource Material Indicators commented.
An accompanying snapshot confirmed that the bulk of resistance is lurking just below the $20,000 mark.
“Let’s see if $19.5k holds to set up another potential run at the R/S flip zone ~$20k,” Material Indicators added.
On the downside, analyst Maartunn, a contributor to chain analysis platform CryptoQuant, noted a large area of bid interest between $18,000 and $18,500.
This was worth it around 65 million dollars from September 28, potentially forming a support cushion.
As Cointelegraph reported, the area below June’s low of $17,600 is conversely devoid of bid support, opening up the potential for a cascade toward $12,000.
As for the strength of the current rally, traders were skeptical, with popular Twitter account Cheds warning on exposure with “bulls starting to celebrate”.
At the time of writing, BTC/USD was trading around the $19,500 mark.
Related: Legacy Bitcoin Leaves Wallet After 10 Years of Dormancy
The dollar is falling after the last two decades of highs
On the macro side, the story of the day was the Bank of England returning to quantitative easing (QE) after the financial turmoil hit the currency and bond markets.
The Bank of England sparked an immediate rally for GBP/USD after the pair hit all-time lows.
The US dollar, already hitting twenty-year highs, continued to give back gains.
The US dollar index (DXY) looked set to return below 113 at the time of writing, down a whopping 1.5 points on the day.
“Looks like we’ll end the week strong for Bitcoin and stocks as we head into Pumptober,” a hopeful IncomeSharks reacted.
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