Retail traders repeat past mistakes over and over again, analysis concludes, as bulls smoke behind shorts on BTC and ETH.

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attempted to recapture $21,000 on October 29 as weekend trading began on a firm footing.

BTC/USD 1-hour candlestick (bit stamp). Source: TradingView
The dollar surges as the price of BTC bounces
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it rallied to local highs of $21,078 on Bitstamp overnight, enough to hit fresh six-week highs.

The pair had seen a consolidation phase after its first trip to the $21,000 mark, the first time it had traded above $21,000 since September 13.

The subsequent pullback was modest in nature, Bitcoin not even testing $20,000 before pulling back yet again.

At the end of the Wall Street trading week, BTC price action US stocks, the S&P 500 and the Nasdaq Composite Index ended on October 28 up 2.5% and 2.9%, respectively.

In his latest Twitter update, popular trader and analyst Il Capo de Crypto maintained an existing theory on how the short-term price action would play out.

“Same, same,” he summed it up along with a chart showing possible upside and downside target levels.

BTC/USD annotated chart. Source: Il Capo de Crypto / Twitter
A macro note of caution came from fellow trader John Wick, who warned that the US dollar could return to riskier activities.

“Now we look to see if we have a green dot that breaks above the tracking line there,” he commented on a chart of the US Dollar Index (DXY):

“If so, that’s a bad mix leading up to the Fed announcement on November 2.”

Annotated chart of the US Dollar Index (DXY). Source: John Wick/Twitter
Wick refers to next week’s Fed announcement of interest rate hikes, which are expected to match September’s 0.75% increase.

ETH liquidations keep coming
Apparently still skeptical about the bulls’ ability to produce further gains, trader liquidations rose again during the day.

Related: Bitcoin Weak Hands ‘Almost Gone’ as BTC Ignores Amazon, Meta Stocks Drop

Data from monitoring resource Coinglass showed that the shorts burned as they returned to $ 21,000, with a figure for October 29 totaling $ 95 million at the time of writing.

In contrast, the previous day saw just $14 million of shorts liquidated, while October 25 and 26 combined delivered $661 million.

The graph of the history of BTC. Source: Coinglass
“Traders all do the same thing and wonder why it never works,” the IncomeSharks trading account wrote on Twitter, citing a Cointelegraph article about sell-offs hitting Ether.

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“Book shorts below, book liquidations below. Follow the pack and get killed.
ETH short liquidations on October 29 were already at $240 million at the time of writing and seem poised to dwarf the previous days total.

ETH liquidation chart. Source: Coinglass
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should do your own research when making a decision.

Source: CoinTelegraph