Bitcoin Bulls Face $21K Sellers As BTC Price Erases Fed FOMC Losses
Bitcoin (BTC) edged toward $21,000 on November 4 as bulls attempted to regain lost ground.
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it rose overnight to set new daily highs of $20,683 on Bitstamp.
$21,000 sales wall turns out to be ugly
Although it has so far been a lower high on hourly timeframes compared to peaks on November 1 and 2, the move served to offset losses, which came on the back of the Federal Reserve’s rate hike decision.
However, the potential for a push beyond $21,000 was limited, thanks to swap sellers piling up asks at that level.
“If you want to sell, place your orders a little lower than $21k,” Onchain Edge, a contributor at analytics platform CryptoQuant, wrote in part of a tweet along with data from the Binance order book.
Material Indicators, which provides order book data, additionally noted that buy-side orders had been fickle friends in support, coming and going in the order book.
“THIS is why I don’t trust new heavily weighted Bitcoin buywalls,” it commented.
Fellow CryptoQuant contributor Maartunn, meanwhile, added that market sell orders were “still dominant” in the current setup.
“Nothing has really changed, other than a lower Bitcoin price,” stated some of the Twitter commentary on the day.
Equity analyst: “Big boys are loading up”
Beyond crypto, one analyst source noted a potential silver lining for risk assets more broadly in the current climate.
Related: Bitcoin Seller Exhaustion Hits 4-Year Low in ‘Typical’ Bear Market Move
The Smart Money Confidence (SMC) sentiment indicator, traditionally used for stocks, is now at “historic highs,” Game of Trades noted.
High SMC scores coincide with the outperformance of the S&P 500, and given Bitcoin’s correlation to traditional markets, there may be cause for optimism on the back of the current reading of 0.61.
SMC peaked at 0.78 in late September, with a bounce therefore required in the future.
“The big guys are loading up. Smart money confidence is at historically high levels,” an optimistic Game of Trades nonetheless in summary.
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