Bitcoin (BTC) attempted to regain its 18-month high on November 21 as order book activity gave one analyst a feeling of deja vu.
BTC/USD 4-hour chart. Source: TradingView
Whale games conjure up Bitcoin’s first quarter of 2023
Data from Cointelegraph Markets Pro and TradingView showed that BTC price momentum increased, reaching a high of $37,770 the previous day.
Bitcoin was now at $37,400 and remained in a range that also characterized the second week of the month.
However, for on-chain monitoring resource Material Indicators, the market looked more like the first quarter of this year – the period that marked the start of Bitcoin’s recovery from post-FTX lows.
Analysis of the order book data revealed that a major liquidity provider, which it informally referred to at the time as “Notorious BID,” could be shaping supply support again.
Specifically, the supply liquidity “has risen and fallen seven times at $33,000 in the last 30 days,” said X subscribers.
“I can’t confirm if this is the company I called Notorious BID in the first quarter, but I can tell you we’ve played this game before.”
BTC/USDT liquidity data. Source: Material Indicators/X
An accompanying snapshot of BTC/USDT liquidity also showed sellers lining up at and immediately below $38,000.
Among whales, the largest order class – between $1 million and $10 million – was the only active cohort, while others unanimously reduced exposure throughout the week.
Commenting on the situation, Keith Alan, co-founder of Material Indicators, argued that the companies behind the buy orders could be more organized than just high-volume speculators.
The bid wall at $33,000 disappeared AGAIN and Brown MegaWhales bought resistance at the local top AGAIN.
If you think MegaWhales have a timing issue, re-read the thread I shared from @MI_Algos.
No idea how long they’ll keep this game going. Of course I have my theory about… pic.twitter.com/sEZuvSgWIs
— Keith Alan (@KAProductions) November 20, 2023
“Quick collapse” could follow $40,000 skimming
Meanwhile, Michaël van de Poppe, founder and CEO of trading firm Eight, predicted what could come next and refused to take $40,000 off the table.
Related: 70% of BTC Is Dormant for a Year – 5 Things to Know About Bitcoin This Week
“Bitcoin keeps going up. Making higher lows and attacking resistance for the fourth time,” he commented on overnight events.
“A breakout to $40,000 followed by a rapid fall again would not be a surprise. Keep buying the dips!”
Annotated BTC/USD chart. Michael van de Poppe/X
Popular analyst Matthew Hyland warned that the relative strength index (RSI) could risk forming a bearish divergence with price if it fails to break above current 18-month highs just below $38,000.
At the time of writing, the bulls have still not been able to muster the required momentum.
#Bitcoin is still going according to plan
Price and RSI are rising
Both need to make higher highs to prevent any possibility of a bearish divergence
I will continue to update this situation: https://t.co/yNCi1fBuz2 pic.twitter.com/1XxPhiDd28
— Matthew Hyland (@MatthewHyland_) November 21, 2023
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.
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