Bitcoin bulls are struggling to influence the trend as CPI nerves combine with an already weak time frame performance.
Bitcoin
BTC
hit
$23,397
As the dust settled on US deregulation news, February 13th saw massive liquidity around Wall Street.
BTC traders spread a lower bid
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD at $21,476 on Bitstamp, which was close to three-week lows over the weekend.
News of blockchain firm Paxos being sued by the Securities and Exchange Commission added to market jitters, as analysts awaited a “smooth” day ahead of key US macroeconomic data.
As such, BTC spot price action has moved closer and closer to a large area of supply liquidity in the Binance order book, Maartunn, a contributor to the on-chain analytics platform CryptoQuant, called the “Great Wall.”
“The Great Wall (price support) in Bitcoin is placed at $21,500. Some bids have been filled this morning. This has reduced the strength of the wall from $25~27 million to $19 million,” he noted.
Maartunn used data from monitoring resource material indicators, which revealed in his commentary that diluted offers near the top of the liquidity cloud are placed lower.
In the short term, eyes on the February 14 consumer price index (CPI) prompted a massive move to risky assets.
“Since the collapse, the thoughts have remained the same. I don’t see any upside confidence changing until 20.3K liquidity is removed,” popular trader Crypto Chase wrote in a recent Twitter update.
“Today is likely to be choppy and the CPI should provide the next ‘movement’ tomorrow. However, today I will focus on intraday ES trades.”
A survey by another trading account, Daan Crypto Trades, also showed roughly equal expectations for the market to go higher or lower following the CPI.
“This is the 4th time in a row that Sunday’s pump or dump has quickly reversed,” added a separate post on BTC price overnight action.
“As you probably know, this is a very common thing to see and a reason to always be suspicious of seeing weekend moves in BTC.”
Stocks, dollar flooded before the gun
US stocks opened the week slightly higher, with the S&P 500 and Nasdaq Composite up 0.4% and 0.6%, respectively.
Related: First Weekly Death Cross – 5 Things to Know in Bitcoin This Week
The US dollar index (DXY) was undecided at the time of writing, before consolidating after a solid recovery.
“Big day tomorrow with CPi data release at 1.30pm. DXY price was seen at the top of the parallel channel with a decisive break in either direction to determine the next big move for Btc Ethereum and other Altcoins,” Matthew Dixon, founder and CEO of crypto rating platform Evai, summarized the forecast.
“The preferred direction will be +ve for BTC and down for the Dollar.”
The accompanying chart showed DXY on four hourly time frames
