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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Whales Increase Selling, BTC Rejected From $20,000

Reynaldo Marquez
Reynaldo Marquez
1 year ago
2 mins read
Bitcoin Is An alternative To Economic Condition, Says CEO Of Franklin

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Bitcoin has been experiencing some volatility over today’s trading session as the price of BTC touches critical resistance levels. The number one crypto by market cap positively reacted to macroeconomic factors, but as the weekend approaches, low levels might lead to sudden price movement.

Related Reading: WATCH: Weekend At Bitcoin’s: Will The Dead Crypto Make A Comeback? BTCUSD September 2, 2022

At the time of writing, Bitcoin (BTC) trades at $19,800 with a 1% profit in the last 24 hours and an 8% loss over the past week. The cryptocurrency saw bullish price action after the U.S. posted important metrics about their economy, but the rally was short lived as BTC stumble below a cluster of selling orders at around $20,400.

Bitcoin BTC BTCUSDT
BTC’s price moving sideways on the 4-hour chart. Source: BTCUSDT Tradingview

Data from Material Indicators shows how the liquidity in the Binance order books has been following the price of Bitcoin. Large players have been setting buy and sell orders as BTC approaches critical levels.

As seen in the chart below, today’s rejection was triggered by a stack of around $20 million in asks orders as Bitcoin trended to the upside. The price has seen a similar pattern during this week with BTC’s price trending upwards only to experience overhead resistance triggered by a spike in ask liquidity.

Bitcoin BTC BTCUSDT MI 1
BTC’s price sees spikes in sell orders when it approaches $20,500 on lower timeframes. Source: Material Indicators

On the opposite direction, buy (bid) orders have remained relatively more stable with $19,500, $19,000, and $18,000 displaying the most liquidity. These levels will be critical as they will operate as support and prevent BTC’s price from reaching a new yearly low if the market attempts to trend lower.

In that sense, Material Indicators also show an increase in selling pressure from large players. Asks orders of over $100,000 and $1 million have been increasing on lower timeframes and could operate as a short-term hurdle for any potential upside.

In the U.S., the weekend will be extended until Tuesday due to a holiday. This often leads to spikes in volatility as low volume influence the price action.

What Could Play In Favor Of Bitcoin?

Additional data provided by analyst Justin Bennett indicates a potential rejection of the U.S. dollar as the currency attempts to break above an important flat base. This could lead to reclaim of levels last seen in 2003.

Related Reading: How Low Can Bitcoin Go? Here’s What The Different Price Models Say

However, the currency has been unable to clear the area above 109, as measured by the DXY Index, and a “fakeout” might be in play. Bitcoin and the crypto market have been negatively correlated with the U.S. dollar. Therefore, a rejection might play in favor of the nascent asset class. Bennett said:

So far, it looks like the $DXY was “wrong”. Maybe a pullback to 107 next week if this trend line breaks. That would be bullish for crypto in the short term. But ultimately, I think the USD index heads to 112-113 and probably even higher.

Bitcoin BTC BTCUSDT MI 2
U.S. Dollar facing potential fakeout on the 4-hour chart. Source: DXY Index on Tradingview via Justin Bennett
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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

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We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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