The gravitational pull between bullish sentiments and anticipations of a dip in BTC remains a focal point in the cryptocurrency market. While BTC hovers closely around the $28K threshold maintaining a persistent pressure, a camp in the market is wary of potential losses rounding the bend.
The battle between these two bullish and bearish projections is predominantly observed in the tussle between two key moving averages (MAs) on one-day timeframes. The outcome of which would likely steer the trend for the remainder of October. The coordinates of these lines in the sand reside around $27K & $28K, setting the stage for an impending clash. The analysis suggests an increase in open interest (OI) across exchanges, which could precipitate a rhythmic press of shorts followed by longs.
However, amidst the tightening suspense, monitoring resource CoinGlass exhibited relatively marginal liquidations across both long and short BTC positions through this period. Conversely, a more comprehensive vantage point tells a different story. By dividing whales into volume-based cohorts, the data reveals what can only be treated as a contradictory shuffle, with some classes of whales hiking value exposure without igniting a wider uptrend.
In particular, the class that often triggers spot price action — the orders worth between $100,000 and $1 million — have displayed aggressive transactions over the week, but again without a noticeable rally. In the past week, these whales bought dips on a net scale of nearly $13.8 million. However, within the same time frame, other whales manifested net sales amounting to nearly $60 million, a significant counterweight to buying ambitions.
Analysts speculate if such a move could be related to the FTX exchange’s liquidation of assets. Regardless of the speculation, the surprise element lies not in the price not shooting upwards; rather it’s the fact the price did not tumble.
This friction in the balance between the bullish and the bearish sentiment, between aggressive buying and substantial selling postures, comes intertwined with potential liquidity being prepared below $27,400. Thus, it appears that our beloved BTC could well be heading for yet another roller-coaster ride this quarter.
While this development does not constitute investment advice, crypto enthusiasts should conduct their homework before making a decision as every risk involved in this volatile market could result in substantial gains or losses.
Source: Cointelegraph
