After a brutal weekend for the bulls, Bitcoin has yet to stabilize in the high range of its current level. At press time, BTC is trading at $ 48,727, up 2% in the last 24 hours and down 14.9% in the last week.
Related reading | Bitcoin trends down as to why the stock market could be a bull problem
BTC is trending down on the 4 hour chart. Source: BTCUSD Tradingview
Data from Material Indicators suggests that Bitcoin (blue line below) has big support at $ 46,000 as over $ 26 million in bids (below the yellow price) is at that level. On the flip side, the price of BTC has multiple levels of resistance at $ 50,000 and $ 51,500, as can be seen in the graph below.
Source: material indicators
Further data provided by Material Indicators suggests that big players were behind the recent Bitcoin price action, which responded to macroeconomic factors. As can be seen below, announcements by Federal Reserve Chairman Jerome Powell last week caused movement in BTC’s order book almost immediately.
JPow speech translates into pulled order + additional resistance.
The recognition of rampant inflation means that they do not exacerbate the problem (=> tapering).
Market spoke. # BTC pic.twitter.com/vzoP2mLNDz
– Materials Scientist (@Mtrl_Scientist) November 30, 2021
The graph above also shows high levels of resistance at $ 70,000 and support at $ 50,000, the price range of BTC that was stuck until last Friday. In the past week, according to Material Indicators, several bid and ask orders were placed in a fashion attribute to large and institutional players.
This coincides with QCP Capital’s speculation that a whale or institutional players would topple Bitcoin’s rally as it slipped into the $ 60,000 area.
Another experienced trader, Peter Brandt, seems to share the same thesis. Through his Twitter account, Brandt showed the following image to show that the recent downward trend in BTC price saw significantly lower sales volume than it did during the May crash from $ 65,000 to $ 30,000. The legendary dealer added:
We haven’t seen the type of panic selling volume that characterizes market lows. Not that such volume spikes are necessary, but to this day the volume profile is more like a bear trend developed by large operators.
More blood in the future of Bitcoin? Why the crypto market might have changed
Still trading above $ 40,000, selling pressure could build to retest the support at $ 30,000, leading to yet another phase of consolidation like the one seen after the May crash.
For now, there is a high level of uncertainty in the crypto market as the violent movements take time to settle in. This contradicts the expectations of those waiting for BTC to behave similarly to 2013 and 2017.
At the time, Bitcoin saw a massive rally well into December that preceded a multi-year bear market. However, new entrants could change its dynamics. This affects the inner cycles that are embedded in experienced operators.
Related reading | New study says Ethereum could become a better inflation hedge over Bitcoin
As a result of institutional takeover, Bitcoin appears to be more vulnerable to their influence. Dan Tapiero, CEO of Pantera Capital, and analyst William Clemente believe BTC’s market dynamics have changed.
I’ve talked about this for a while but really think the 4 year cycles are good. Why? The kind of market participants we have now.
Was able to see very well rounded upper / lower parts from now on.
A disability would have a blowoff top then expect a longer bear.
– Will Clemente (@WClementeIII) December 6, 2021
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