Bitcoin is trending down on the shorter time frames, which seems to suggest future losses. The No. 1 cryptocurrency by market cap has recorded a 3% loss over the past week, but there are potential signs of hope for the bulls.
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At the time of writing, Bitcoin (BTC) is trading at $20,000, down 1% over the past 24 hours.
As one pseudonymous trader pointed out, Bitcoin whales are currently buying into BTC’s price action and could signal a future rally. Traders use the data provided by Material Indicators to show what different investor classes are doing when BTC is recording losses.
As seen below, investors with buy orders around $100,000 (purple in the chart below) increased their buying pressure as nearly every other and smaller investor class sold off this price action. This difference could suggest a rebound, as these BTC whales often predict or create price trends.pseudonymous trader explain:
Whales (purple) are market buying while #bitcoin prices are flat. Historically, purple has been the most important category for future price action. Clear differences, hopefully this time will play out.
Bitcoin whales (brown on the chart) also saw a small uptick in buy orders as BTC moved back into the region around $20,000. This investor class is mostly dormant in the current market environment, but their recent involvement highlights the importance of BTC’s current levels.
In this sense, Material Indicators recorded a large number of bid orders from $19,900 to $20,000 for BTC around this area. There are more than $20 million in bids at these levels alone, with another $6 million at around $19,500, and $19,000 to $19,000 in bids over $10.
In other words, Bitcoin appears to have enough liquidity to stay at current levels for now.
Can Bitcoin Bulls Get a Green Monthly Candle?
On the higher timeframes, additional data from Material Indicators recorded a significant liquidity area between $17,000 and $20,000. Large market players may try to push prices lower to fulfill these orders, which could hinder bulls’ attempts to save the monthly candle.
Analysts at Material Indicators wrote:
The Bulls are defending their 2017 top, but with one more day left, it’s nearly impossible to print a green monthly candle. Still a chance to get green in the weekly. Expect volatility. Either way, Bitcoin will soon explode or crash.
Analysts expect relief in the coming days after a possible retest of the yearly lows. Any bullish thesis will be invalidated if BTC loses $17,500.
trend forecasting #BTC Weekly chart. The signal won’t print until the W candle closes, but it suggests we could see the 200 WMA run this week. Good to test the lows first. For me, anything below $17.5k is not valid. #NFA pic.twitter.com/hvs1as44qG
– Material Specifications (@MI_Algos) June 28, 2022