Bitcoin price fell to $18.3K after September CPI data came in higher-than-expected at 8.2%. However, BTC price rallied hours after the CPI release and continued its gains on Friday. According to data, a bitcoin whale simultaneously entered into long positions on futures exchanges Binance and Bitmex.
Bitcoin (BTC) price surges amid whale accumulation
Bitcoin price rallied in correlation with the US stock market on Thursday, hours after the release of higher-than-expected CPI data. While September CPI comes in lower than July and August, core CPI rises to a 40-year high.
Interestingly, a bitcoin whale went long on futures exchanges Binance and Bitmex as BTC price fell to $18.3K. The move is expected to come as a result of the US Energy Information Administration reporting a significant increase in crude stocks.
Bitcoin Whale goes long. Source: CryptoQuant
The broader crypto market rallied on Bitcoin (BTC) price gains. However, it is not a spot buy that could have strengthened bitcoin bulls. Nevertheless, the Bitcoin walk purchase is enough to bring an additional rebound to profit in the futures markets in the short term.
Meanwhile, indicators such as the Maker/Buyer Sell Ratio, the Supply at Loss and the Adjusted SOPR suggest it’s time to go long. However, traders need to look at Open Interest (OI) and Derivatives Reserves and Netflow to confirm their entry.
Has Bitcoin Bottomed Out?
Bitcoin price has since rallied many times from the $18.3k level which is suggesting a bottom around $18,500. Whales took another opportunity to buy Bitcoin (BTC) at lower levels to rally. Also, users can track whales moving large amounts of BTC during capitulation events using the Bitcoin Exchange Inflow Mean indicator.
However, BTC price is still below the psychological $20,000 level. Until the price moves above the level to confirm an upward move, bitcoin price is under pressure.
Bitcoin (BTC) price on a 1-hour timeframe. Source: TradingView
At the time of writing, bitcoin price is trading at $19,608, up 3% in the last 24 hours. BTC price is still struggling to surpass $20,000 and it is turning away from the strong resistance level.
Varinder is a technical writer and editor, technology enthusiast, and analytical thinker. Fascinated by disruptive technologies, he has shared his knowledge of blockchain, cryptocurrencies, artificial intelligence and the Internet of Things. He has long been associated with the blockchain and cryptocurrency industry and is currently reporting on the latest updates and developments in the crypto industry.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.
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