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Bitcoin Stagnates Below $38,000 as Analysis Suggests ‘Notorious BID’ Is Back

2 weeks ago
0 0 2 minutes read

Bitcoin (BTC) looked to hit its 18-month high through Nov. 21 as order book activity gave one analyst a sense of déjà vu.

BTC/USD 4-hour chart. Source: TradingView

Whale Games Talk About Bitcoin’s First Quarter 2023

Data from Cointelegraph Markets Pro and TradingView showed that BTC price momentum stood at $37,770 the previous day.

Now hovering around $37,400, Bitcoin remained in a range that had also characterized the second week of the month.

However, for hardware indicators of on-chain monitoring assets, the market was more akin to the first quarter of this year – the period that marked the beginning of Bitcoin’s recovery from post-FTX lows.

By analyzing order book data, he suggested that a major liquidity provider, which he informally called the “Notorious BID” at the time, could once again shape support for the bids.

Specifically, bid liquidity had increased to $33,000 “7 times in the last 30 days,” according to said X Subscribers (formerly Twitter).

“I can’t confirm if this is the entity I named Notorious BID in the first quarter, but I can tell you we’ve seen this play out before.”

BTC/USDT liquidity data. Source: Hardware Indicators/X

A snapshot of BTC/USDT liquidity also showed sellers lining up at $38,000 and immediately below.

Among whales, it was the largest order class – between $1 million and $10 million – that made up the only active cohort, with the others unanimously decreasing their exposure throughout the week.

Commenting on the situation, Keith Alan, co-founder of Material Indicators, argued that the entities behind the buy orders could be more organized than just high-volume speculators.

‘Quick Breakdown’ Could Follow $40,000 Payout

Meanwhile, anticipating what might come next, Michaël van de Poppe, founder and CEO of trading company Eight, refused to take $40,000 off the table.

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“Bitcoin continues to rise higher and higher. Making higher lows and attacking resistance for the fourth time,” he said. commented on nighttime events.

“I wouldn’t be surprised by a breakout to $40,000 and then a quick breakdown again. Keep buying the dips! »

BTC/USD annotated chart. Michaël van de Poppe/X

Popular analyst Matthew Hyland has warned that the Relative Strength Index (RSI) could risk printing a bearish divergence with the price if the latter fails to surpass the current 18-month highs just below $38,000 .

At the time of writing, the bulls were still unable to generate the required momentum.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.