Traders say Bitcoin price bounce is overdue after a ‘massive’ BTC long position appears
Bitcoin (BTC) traded in an increasingly narrow range on Sep. 6 as bets piled in over an imminent breakout.
Binance futures giant sucks in spent BTC
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD staying under $20,000 for a fourth straight day with bulls failing to crack resistance.
As many wondered when and how the latest consolidation phase would end, two popular social media traders noticed an ongoing accumulation trend by an unknown large-scale Binance futures trading entity.
With retail investors selling, that entity had spent several days soaking up the liquidity, and the result was likely obvious.
“Bounce incoming,” Il Capo of Crypto predicted in part of an update on the phenomenon, describing the entity’s long BTC position as “massive” and “easily” worth 30,000 BTC or more.
And even more. Big long position there. Massive.Bounce incoming. — il Capo Of Crypto (@CryptoCapo_) September 6, 2022
“There is quite an interest at 19,650$ at Binance futures,” fellow trading account JACKIS continued.
“We are seeing the positions filled, the price goes, up, then a new wave of selling comes in, hit the new orders again and repeat. Looks like someone accumulating hard.”
Order book data from Binance uploaded to Twitter by on-chain monitoring resource Material Indicators meanwhile showed resistance building overhead into Sep. 6.
Elsewhere, trader Crypto Tony warned that altcoins were exceeding Bitcoin’s intraday gains, something which called for caution. Ethereum (ETH) was up 4% on the day ahead of the Sep. 15 Merge event.
“Bitcoin isn't moving while Ethereum and Altcoins move, which makes sense while people try and make the most of the upcoming merge,” he tweeted.
“But these moves usually end in a dump, when this happens. So be cautious.”
Dollar keeps up pressure
On macro, the U.S. dollar was the major focus once again as it hit new multi-decade highs against a basket of trading partner currencies.
The U.S. dollar index (DXY) passed 110.55 on the day before returning to consolidate, laying further waste to the euro and yen in the process.
GM fam. ☕️This week is all about the $DXY. If this rising wedge breaks down, we should get short-term relief for #stocks and #crypto.Testing resistance now. $BTC $ETH — Justin Bennett (@JustinBennettFX) September 6, 2022
In a stark outlook for the coming year, popular macro analytics account Fejau forecast ongoing DXY strength as the European energy crisis unfolded.
The Federal Reserve, an extensive Twitter thread explained on Sep. 5, would face such dollar strength that it would be necessary to tame it artificially.
“We're about to experience a sovereign debt crisis caused by the Europe energy crisis, all a capstone on the 100 year fiat expirement,” it summarized.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.Source