Bitcoin (BTC) shifted towards more liquidity around the Wall Street open on February 13 as the dust settled on the United States regulatory news.
BTC traders distribute the offers on the downside
Data from Cointelegraph Markets Pro and TradingView BTC/USD showed $21,476 on Bitstamp, nearly matching the three-week lows from the weekend.
As analysts expected a “choppy” day ahead of key US macroeconomic data, the news that blockchain company Paxos was being sued by the Securities and Exchange Commission (SEC) added to market jitters.
Thus, BTC spot price action moved ever closer to a major area of bid liquidity on the Binance order book, something Maartunn, a contributor to on-chain analytics platform CryptoQuant, reported. nicknamed “The big Wall.”
“’The Great Wall’ (price support) in Bitcoin is placed at $21,500. Some offers were filled this morning. Therefore, the strength of the wall has been reduced from $25~$27 million to $19 million,” he noted.
Maartunn used data from the monitoring resource Material Indicators, which in its own comments revealed that drawdown bids near the top of the liquidity cloud were being repositioned lower.
#BTC PA behaving as predicted after the #DeathCross on the weekly chart. The ~$24.4k supply wall still holds above the trend line. At first glance, it looks like liquidity was taken, but with a simple volume percentile filter adjustment, we can see ~$6 million down. pic.twitter.com/2OGe7tjOpu
— Material indicators (@MI_Algos) February 13, 2023
In the short term, eyes were on the February 14 consumer price index (CPI) to move risky assets en masse.
“Thoughts remain the same since the break. I don’t see any high conviction long swings until the 20.3K liquidity is cleared,” popular trader Crypto Chase said. wrote in a new Twitter update.
“Most likely today will be choppy and the CPI should provide the next ‘move’ tomorrow. That being said, my focus today will be on intraday $ES trading.“
TO survey by another trading account Daan Crypto Trades meanwhile showed roughly equal expectations for the market to go higher or lower after CPI.
“This is the fourth time in a row that a Sunday bomb or discharge has receded rapidly,” a separate post aggregate on BTC price action overnight.
“As you probably know, this is a very common thing to see and a reason to always be skeptical of weekend moves in BTC.”
Stocks, dollar hold firm ahead of CPI
US stocks opened the week slightly higher, with the S&P 500 and Nasdaq Composite Index rising 0.4% and 0.6%, respectively.
Related: First Weekly Death Cross: 5 Things To Know About Bitcoin This Week
The US Dollar Index (DXY) was undecided at the time of writing, having spent the previous week consolidating after a solid rally.
“Big day tomorrow with CPi data release at 13:30 GMT. DXY price is seen at the top of the parallel channel with a decisive breakout both ways to determine the next big move for Btc Ethereum and other Altcoins “, Matthew Dixon, founder and CEO of crypto rating platform evai, summarized about the scenery.
“The preferred direction is down for the dollar, which would be +ve for BTC.”
An accompanying chart was showing DXY on 4-hour time frames.
The views, thoughts and opinions expressed here are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
