bitcoin price has been steadily moving around its current range as 2023 draws to a close. Recent data sheds light on the current market structure and what could trigger an extension of bullish momentum.
At the time of writing, bitcoin (btc) is trading at $37,900 with a loss of 1% in the last 24 hours. During the previous week, the cryptocurrency traded in the green as other assets recorded small losses except Solana (SOL) and Dogecoin (DOGE).
Big day for bitcoin price: what the whales are planning
Data shared by the cryptanalysis platform Material Indicators sample the current status of the order book of the Binance trading venue. The largest cryptocurrency in the world, analyzing this order book often reveals patterns and clues to anticipate price action.
Today, bitcoin faces two potentially high volatility events: whales will fight for the close of the monthly candle and the United States will reveal macroeconomic data. Therefore, the cryptocurrency could finally break above its current levels or retest support.
Data from Material Indicators, as seen in the chart below, shows an increase in buy orders from bitcoin whales and “mega” whales (purple and brown on the chart, respectively). This buying pressure is unlikely to translate into a rally as these investors prioritize market efficiency.
Therefore, they place small orders on the exchanges to reduce slippage, which drives the price into the range. The good news is that this behavior is usually positive for the price of btc by attracting, according to Material Indicators, “bid (buy) liquidity.”
Once there is enough liquidity in the order book, the whales will be able to sell their positions and avoid a downward slide. The firm stated:
The more they attract, the more they can get rid of while minimizing slippage. Over the last 7 days, purple whales bought ~$16 million of #btc from the market and within 4 hours distributed ~$42 million to the bidders they attracted to the range. Regardless of whether you are bullish or bearish, there are trading opportunities ahead as this game appears to be in extended play mode.
On that note, traders should expect more sideways price movements as whales and mega whales take over the market. Meanwhile, $40,000 and $35,000 are two critical areas that could signal a change in the current market dynamics.
Cover image from Unsplash, chart from Tradingview
