Bitcoin breakout possible as whales close in on sideways BTC price


Bitcoin (BTC) stayed strictly rangebound on Aug. 24 as consumers and sellers tried to spark a breakout.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

Spot worth squeeze on the playing cards

Information from Cointelegraph Markets Pro and TradingView confirmed BTC/USD hovering close to $21,500 on the Wall Road open.

The pair had seen little motion within the 24 hours prior, coming into the fifth day of sideways movement within an increasingly tight range.

Data from the order book of major exchange Binance uploaded to social media by on-chain monitoring resource Material Indicators hinted that the established order was irritating alternate customers, together with whales.

On the time of writing, bids had been inching increased in direction of spot worth, whereas vendor curiosity was constructing at $21,600.

The consequence may very well be volatility as liquidity reduces the vary during which BTC/USD floats — both to the upside or draw back, relying on whether or not consumers or vendor win out.

BTC/USD purchase and promote ranges (Binance). Supply: Materials Indicators/ Twitter

“Actually not a lot has modified since yesterday, I’m nonetheless on the lookout for that one leg right down to take out the swing lows, adopted by a aid wave,” well-liked dealer Crypto Tony in the meantime told Twitter followers in an replace on the day.

Fellow dealer Crypto Ed in the meantime mentioned that he was “not satisfied” in regards to the power of the bounce from the weekend lows round $20,800.

In his newest YouTube video, he highlighted potential market entry ranges between these lows and the present spot with an eye fixed to seeing a retest. Earlier than that, he added, Bitcoin may revisit the vary highs at simply above $22,000.

Greenback creeps again in direction of two-decade peak

Shares in the meantime added to the sense {that a} threat asset resurgence may characterize the day. 

Associated: Bitcoin bulls may win big as two key moving averages prepare to cross

The S&P 500 and Nasdaq Composite Index each headed increased on the Wall Road open, main Cointelegraph contributor Michaël van de Poppe to eye knock-on results for BTC/USD.

Widespread Twitter account Sport of Trades contributed a longer-term bullish view for U.S. equities, noting that 90% of S&P 500 shares had been now above their 50-day transferring common.

“This studying has offered buyers with jaw dropping returns in a 6–12 month time-frame. Load up,” he advised followers.

A possible headwind came in the form of the U.S. dollar. After dropping swiftly on the back of U.S. manufacturing data, the U.S. dollar index (DXY) canceled out its losses on the day, heading back toward new twenty-year highs.

U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Related articles