Bitcoin breakout possible as whales approach sideways BTC price
Bitcoin (BTC) remained tightly capped on August 24 as buyers and sellers tried to trigger a breakout.
Spot price squeeze on the cards
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hovering near $21,500 at the Wall Street open.
The pair had seen little action in the previous 24 hours, entering the fifth day of sideways motion within an increasingly dense area.
Data from the order book of major exchanges Binance was uploaded to social media by the chain monitoring resource Material Indicators implied that the status quo was frustrating exchange users, including whales.
At the time of writing, bids were higher against spot price, while seller interest increased to $21,600.
The result can be volatility as liquidity reduces the range in which BTC/USD floats – either to the upside or downside, depending on whether buyers or sellers are winning.
“Really not much has changed since yesterday, I’m still looking for the one leg down to take out the swing declines, followed by a wave of relief,” popular trader Crypto Tony meanwhile told Twitter followers in an update of the day.
Fellow trader Crypto Ed, meanwhile, said he was “not convinced” about the strength of the rebound from weekend lows around $20,800.
In his latest YouTube video, he highlighted potential market entry levels between these lows and the current spot with an eye to seeing a retest. Before that, he added, Bitcoin could resume the interval highs just above $22,000.
The dollar is creeping back towards its two-decade high
Equities, meanwhile, added to the feeling that a resurgence in risk assets could mark the day.
Related: Bitcoin bulls could win big as two key moving averages prepare to cross
The S&P 500 and Nasdaq Composite index both edged higher at the Wall Street open, leading Cointelegraph contributor Michaël van de Poppe to look at the effects of BTC/USD.
#Nasdaq bounces upwards, while #Bitcoin looking ready for a break above $21.5K.
— Michaël van de Poppe (@CryptoMichNL) 24 August 2022
Popular Twitter account Game of Trades contributed a long-term bullish outlook for US stocks, noting that 90% of S&P 500 stocks were now above their 50-day moving average.
“This reading has given investors a chain-declining return in a 6-12 month time frame. Upload,” he the council followers.
A possible headwind came in the form of the US dollar. After falling sharply on the back of US manufacturing data, the US Dollar Index (DXY) canceled out losses on the day, heading back towards new twenty-year highs.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.
