Bitcoin is failed to consolidate around the upper range of its current levels after a rough weekend for the bulls. As of press time, the price of BTC is $48,727, with a 2% profit in the last 24 hours and a 14.9 percent loss in the last week.
According to Material Indicators data, Bitcoin (blue line below) has significant support at $46,000, with over $26 million in bid orders (below the price in yellow) sitting at this level. BTC’s price has many levels of resistance to the upward, as seen in the chart below, at $50,000 and $51,500.
According to further data given by Material Indicators, large players have been driving Bitcoin’s recent price movement in response to macroeconomic issues. The announcements made by US Federal Reserve Chairman Jerome Powell last week nearly instantly translated into moves in BTC’s order book, as seen below.
JPow speech translated into pulled order + added resistance.
Acknowledging rampant inflation means they won't continue to add to the problem (=> tapering).
— Material Scientist (@Mtrl_Scientist) November 30, 2021
The chart above also shows strong resistance above $70,000 and support at $50,000, the price range in which Bitcoin was locked until this past Friday. According to Material Indicators, multiple bid and ask orders have been placed in a way that may be attributed to significant and institutional participants over the last week.
This corresponds with QCP Capital’s belief that a whale or institutional players were stifling Bitcoin’s advance when it approached $60,000 per coin.
Another senior trader, Peter Brandt, appears to hold the same view. Brandt used his Twitter account to present the graphic below, which shows that BTC’s latest decline witnessed substantially less selling volume than the May drop from $65,000 to $30,000. The famous merchant continued:
“We have not seen the type of panic selling volume that characterizes market bottoms. Not that such volume spikes are necessary, but to date the volume profile more resembles a bear trend engineered by big operators.”
Still trading over $40,000, selling pressure might build to retest the $30,000 support, resulting in another consolidation phase similar to the one seen after the May drop. For the time being, the crypto market is fraught with uncertainty as the dramatic shift takes its toll. This contradicts many who expected BTC to perform similarly to 2013 and 2017.
At the time, Bitcoin saw a strong rise into December, heralding the start of a multi-year bear market. However, new market entrants may alter the market’s dynamics. As a result, the inner cycles encoded in experienced operators are affected.
As a result of institutional acceptance, Bitcoin appears to be more vulnerable to its influence. Pantera Capital CEO Dan Tapiero and analyst William Clemente are among those who feel the market dynamics of BTC have shifted.
Have talked about this for a while but really think there’s a good chance 4yr cycles are over. Why? The type of market participants we now have.
Could very well see rounded tops/bottoms from now on.
Invalidation would be having a blowoff top, would then expect prolonged bear.
— Will Clemente (@WClementeIII) December 6, 2021