Bitcoin (BTC) drifted towards high liquidity around the open of Wall Street on Feb. 13 as the dust settled on United States regulatory news.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
BTC traders diversify bids lower
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD $21,476 on Bitstamp, nearly touching the weekend’s three-week lows.
As analysts anticipated a “choppy” day ahead of key US macroeconomic data, news that blockchain firm Paxos has been sued by the Securities and Exchange Commission (SEC) added to the market’s nervousness.
The BTC spot price action thus drew closer and closer to a key area of bid liquidity in the Binance order book, something that Maartunn, a contributor to on-chain analytics platform CryptoQuant, has dubbed “The Great Wall.”
“’The Great Wall’ (price support) for Bitcoin is placed at $21,500. Some bids were placed this morning. This reduced the thickness of the wall from $25-27 million to $19 million,” he noted.
Maartunn used data from Monitoring Resource Material Indicators, which in its own comments showed that thinning bids were shifted down near the top of the liquidity cloud.
In the short-term, eyes are on the February 14th Consumer Price Index (CPI) for en masse movement of risky assets.
“The thoughts have remained the same since the collapse. I don’t see any high conviction swing longs until 20.3k liquidity is taken out,” popular trader Crypto Chase wrote in a new Twitter update.
“It will most likely be choppy today and the CPI should provide the next ‘movement’ tomorrow. With that in mind, today I will focus on intraday $ES trades.”
A survey by fellow trader Daan Crypto Trades, meanwhile, showed roughly equal expectations for the market to rise or fall by CPI.
“This is the fourth consecutive day that a Sunday pump or fag has receded quickly,” added a separate post on overnight BTC price action.
“As you probably know, this is a very common thing and a reason to always be skeptical when seeing weekend moves in BTC.” BTC/USD annotated chart. Source: Daan Crypto Trades/ Twitter
Stocks, dollar treads water ahead of CPI
US stocks opened the week slightly higher, with the S&P 500 and Nasdaq Composite Indexes up 0.4% and 0.6%, respectively.
Related: First Weekly Death Cross Ever – 5 Things to Know in Bitcoin This Week
The US Dollar Index (DXY) was indecisive at the time of writing, having spent the previous week consolidating after a solid recovery.
“Big day tomorrow with CPi data release at 13:30 GMT. DXY price was seen around the top of the parallel channel, with a crucial break in either direction to determine the next big move for Btc Ethereum and other altcoins,” Matthew Dixon, Founder and CEO of crypto valuation platform Evai, summed up the outlook .
“Preferred direction is down for dollar, which would be +ve for BTC.”
An accompanying chart showed DXY on 4 hour time frames
US Dollar Index (DXY) annotated chart. Source: Matthew Dixon/Twitter
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