As the bulls smoke late BTC and ETH shorters, analysis reveals that retail traders are 

repeatedly making the same mistakes.

On October 29, Bitcoin made an attempt to recapture $21,000 as weekend trade got off to a good start.

As Ethereum sells $240 million more in short positions, Bitcoin reaches a new 6-week high.
As Ethereum sells $240 million more in short positions, Bitcoin reaches a new 6-week high. 6

1-hour candle chart for BTC/USD (Bitstamp). the TradingView website

Dollar lurks as the price of bitcoin rises

Cointelegraph Markets Pro and TradingView data tracked BTC/USD as it returned overnight to local highs of $21,078 on Bitstamp, which was sufficient to establish fresh six-week highs.

After reaching $21,000 for the first time since September 13, the pair entered a consolidation phase. This marked the first time since September 13 that the pair has traded above $21,000.

The subsequent retreat was of a moderate kind, with Bitcoin not even approaching $20,000 before rebounding higher.

BTC price activity mirrored U.S. stocks towards the end of the trading week on Wall Street, with the S&P 500 and Nasdaq Composite Index concluding Oct. 28 with gains of 2.5% and 2.9%, respectively.

In his most recent Twitter update, the well-known trader and analyst Il Capo of Crypto maintained an existing theory regarding the course of short-term market activity.

Alongside a graphic depicting potential upside and downside goal levels, he stated, “Same as before.” 

As Ethereum sells $240 million more in short positions, Bitcoin reaches a new 6-week high.
As Ethereum sells $240 million more in short positions, Bitcoin reaches a new 6-week high. 7

BTC/USD annotated chart. Source: Il Capo of Crypto/ Twitter

John Wick, a fellow trader, issued a macro-advisory warning, stating that the possibility of a return of the US dollar’s pressure on risk assets.

He made a comment about a chart of the US dollar index (DXY), saying, “Now we watch to see whether we get a green Dot breaking over the Track line there”:

“If true, that’s a poor combination building up to the Fed statement on November 2nd.”

As Ethereum sells $240 million more in short positions, Bitcoin reaches a new 6-week high.
As Ethereum sells $240 million more in short positions, Bitcoin reaches a new 6-week high. 8

BTC liquidations chart. Source: Coinglass

Wick was alluding to the Federal Reserve’s announcement of interest rate increases scheduled for next week, which are anticipated to mirror the 0.75 percent increase from September.

ETH liquidations keep coming

Trader liquidations were once more increasing on the day, suggesting that traders were still unconvinced of the bulls’ ability to create more gains.

Data from the monitoring tool Coinglass revealed that shorts were suffering losses of up to $21,000, with the total for October 29 standing at $95 million as of this writing.

In contrast, on October 25 and 26, together, $661 million in short positions were liquidated, as opposed to just $14 million the day before.

As Ethereum sells $240 million more in short positions, Bitcoin reaches a new 6-week high.
As Ethereum sells $240 million more in short positions, Bitcoin reaches a new 6-week high. 9

BTC liquidations chart. Source: Coinglass

“Retailers all do the same thing and then wonder why it never works out,” IncomeSharks tweeted, referring to a Cointelegraph article on the impact of liquidations on Ether shorts:

“Record liqudiations at the bottom, shorts at the bottom.” Follow the herd and you will be slaughtered.”

ETH short liquidations on October 29 were already over $240 million as of the time of writing and was on track to surpass the sums from earlier days.

As Ethereum sells $240 million more in short positions, Bitcoin reaches a new 6-week high.
As Ethereum sells $240 million more in short positions, Bitcoin reaches a new 6-week high. 10

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