Bitcoin's Momentum Stalls
Bitcoin (BTC) has been hovering below $38,000, failing to break through to new highs, according to analysts. The cryptocurrency's price momentum reached a peak of $37,770 the day before, but has since remained in a range. On-chain monitoring resource Material Indicators compared the current market conditions to the first quarter of this year, which marked Bitcoin's recovery from post-FTX lows. The analysis suggests that a major liquidity provider, dubbed the "Notorious B.I.D.," may be shaping bid support once again.
Whales and Liquidity
Material Indicators revealed that bid liquidity at $33,000 has come and gone seven times in the last 30 days. The accompanying snapshot of BTC/USDT liquidity also showed sellers lining up at and just below $38,000. Among whales, the largest order class, between $1 million and $10 million, remains active, while others have been reducing their exposure throughout the week. This indicates that the entities behind the buy orders could be more organized than mere speculators.
Predicting the Next Move
Analysts have different opinions on what could come next for Bitcoin. Michaël van de Poppe, founder and CEO of trading firm Eight, believes that Bitcoin could continue to push higher and potentially break through to $40,000 before experiencing a swift breakdown. On the other hand, popular analyst Matthew Hyland warns that the relative strength index (RSI) could print a bearish divergence if Bitcoin fails to pass its current 18-month highs just below $38,000.
As always, it's important to remember that investing in cryptocurrencies carries risks, and readers should conduct their own research before making any decisions.
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