Bitcoin witnessed reduced volatility on October 6th, with market participants preparing for a potential price drop.
Over the last 24 hours, the BTC/USD price stabilized after a failed attempt to breach the $28,000 mark.
Although the cryptocurrency approached this price level again prior to Wall Street’s opening, there were concerns about potential forthcoming losses.
Prominent trader, Daan Crypto Trades, observed a conflict between two major daily moving averages. He predicted that the outcome of this struggle would dictate Bitcoin’s trend for the rest of October.
He highlighted the ongoing contest between the $27,000 and $28,000 price points.
Additionally, he noted the increasing open interest across exchanges, indicating a potential sequence of short squeezes followed by long squeezes. Daan emphasized the importance of monitoring this price range.
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CoinGlass data indicated minor liquidations in both long and short Bitcoin positions on October 6th. Meanwhile, Material Indicators analyzed the trading patterns of “whales,” or large-volume traders.
The study segmented these traders and found that while some were actively buying and selling, leading to a net increase of $13.8 million in market orders on Binance over a week, others sold assets worth nearly $60 million during the same period.
Material Indicators speculated on the possibility of these sales being linked to the potential liquidation of assets from the now-defunct FTX exchange.
The major takeaway was the surprise not in the price’s failure to increase, but its resilience in not dipping further.
Another trading analyst, Exitpump, postulated a potential liquidity trap below the $27,400 mark, suggesting that Bitcoin’s price often retests resistance levels multiple times before establishing a peak.
In essence, as Bitcoin approached the $28,000 mark, market indicators and expert opinions seemed mixed, with some seeing potential for growth and others predicting setbacks.
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