Bitcoin (BTC) made a welcome comeback after Wall Street opened on Sept. 28 as bulls faced whale-sized sellers.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Whales lie in wait for $20,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD surging above $1,000 on the day to hit highs of $19,656 on Bitstamp.
The move characteristically copied an uptrend for US stocks, with the S&P 500 and Nasdaq Composite Indexes gaining 1.5% and 2.2%, respectively.
Now, analysis warned that the $20,000 area was still full of large volume traders eager to continue taking profits.
BTC/USD chart on major exchange Binance “shows brown megawhales dipping into BTC support to minimize slippage,” commented analysis resource Material Indicators.
An accompanying snapshot confirmed most of the resistance lurking just below the $20,000 level.
“Let’s see if $19.5K is enough to set up another potential run to the $20K R/S flip zone,” added Material Indicators.
BTC/USD order book data (Binance). Source: Material Indicators/ Twitter
On the other hand, analyst Maartunn, a contributor to on-chain analytics platform CryptoQuant, noticed a large area of bid interest between $18,000 and $18,500.
This was worth around $65 million as of September 28 and may have provided a cushion of support.
As Cointelegraph reported, the area below the June low of $17,600 is inverted with no supply support, opening the potential for a cascade towards $12,000.
Traders were skeptical about the strength of the current upleg, with popular Twitter account Cheds warning of exposure to “bulls starting to celebrate”.
At the time of writing, BTC/USD was trading around $19,500.
Relative: Older Bitcoin is leaving its wallet after 10 years of hibernation
Dollar collapses after last two-decade high
At the macro level, the story of the day was the UK central bank’s return to quantitative easing (QE) after financial turmoil hit its currency and bond markets.
The Bank of England prompted an immediate recovery for GBP/USD after the pair hit all-time lows.
The US dollar, already off its 20-year high, continued to give up gains.
The US Dollar Index (DXY) appeared to be returning below 113 at the time of writing, down a whopping 1.5 points on the day.
“Looks like we’ll end the week strong for bitcoin and stocks as we head into pumptober,” reacted a hopeful IncomeSharks.
US Dollar Index (DXY) 1 hour candlestick chart. Source: TradingView
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