Traders say Bitcoin price jump overdue after ‘massive’ BTC long position emerges

by · September 6, 2022

Bitcoin (BTC) traded in an increasingly narrow range on September 6 as bets piled in over an imminent breakout.

BTC/USD 1-Hour Candlestick Chart (Bitstamp). Source: TradingView

The Binance futures giant is sucking up used BTC

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD stayed below $20,000 for a fourth straight day with bulls failing to break resistance.

As many wondered when and how the latest consolidation phase would end, two popular social media traders noticed an ongoing accumulation trend by an unknown large-scale Binance futures trading entity.

With retail investors selling, this unit had spent several days soaking up liquidity and the result was probably obvious.

“Bounce incoming,” Il Capo of Crypto predicted in part of an update on the phenomenon, describing the entity’s long BTC position as “massive” and “easily” worth 30,000 BTC or more.

“There is quite a lot of interest at $19,650 on Binance futures,” other trading account JACKIS continued.

“We see the positions fill, the price goes up, then another wave of selling comes in, hits the new orders again and repeats. Looks like someone is rallying hard.”

Order book data from Binance uploaded to Twitter of monitoring resource in the chain. Material indicators, meanwhile, showed resistance building overhead until September 6.

Binance order book chart. Source: Material Indicators/Twitter

Elsewhere, trader Crypto Tony warned that altcoins exceeded Bitcoin’s intraday gains, urging caution. Ethereum (ETH) was up 4% on the day before the September 15th merger event.

“Bitcoin is not moving while Ethereum and Altcoins are moving, which makes sense as people try to make the most of the upcoming merger,” he tweeted.

“But these moves usually end in a dump, when this happens. So be careful.”

ETH/USD 1-Hour Candlestick Chart (Binance). Source: TradingView

Dollar keeps the pressure up

On the macro front, the US dollar was again the main focus as it hit new multi-decade highs against a basket of trading partner currencies.

Related: BTC Price Sees New $20K Showdown – 5 Things to Know in Bitcoin This Week

The US dollar index ( DXY ) passed 110.55 on the day before returning to consolidate, further trashing the euro and yen in the process.

In a bullish outlook for the coming year, popular macro analysis account Fejau predicted ongoing DXY strength as the European energy crisis unfolded.

Federal Reserve, an extensive Twitter thread explained on September 5, would face such dollar strength that it would be necessary to tame it artificially.

“We are about to experience a sovereign debt crisis caused by the energy crisis in Europe, all a capstone of 100 years of fiat expiration,” it summed up.

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