Home » Bitcoin hits new 6-week high as Ethereum liquidates $240M more shorts

Bitcoin hits new 6-week high as Ethereum liquidates $240M more shorts

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Bitcoin (Bitcoin) attempted to recover $21,000 on October 29.

BTC/USD 1 hour candlestick chart (Bitstamp).Source: Trading View

Dollar Lurks as BTC Price Rebounds

data from Cointelegraph Market Pro When TradingView BTC/USD had enough to hit a new 6-week high as it rallied overnight to local highs of $21,078 on Bitstamp.

The pair then saw an integration phase ensue. first trip It crossed $21,000 for the first time since Sept. 13.

The retracement that followed was modest, with Bitcoin not even testing $20,000 before rising again.

At the end of Wall Street’s trading week, BTC’s price action followed U.S. stocks, with the S&P 500 and Nasdaq Composite Index gaining 2.5% and 2.9% respectively on Oct. 28.

In a recent Twitter update, popular Crypto trader and analyst Il Capo said: existing theory About how short-term price action unfolds.

“It’s the same,” he said wrap up Along with a chart showing potential upward and downward target levels.

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

Fellow trader John Wick warned that the US dollar could put pressure on risk assets.

“Now we’re watching to see if the green dot breaks above the track line,” he said. commented On the chart of the US Dollar Index (DXY).

“If so, it’s a bad combination leading to the November 2nd Fed announcement.”

USD Index (DXY) Annotated Chart.Source: John Wick/Twitter

Wick was referring to next week’s Federal Reserve announcement on rate hikes. These are widely expected to match his 0.75% rise in September.

ETH liquidation continues

Trader liquidations increased again on the day, though the bulls still appear skeptical of their ability to generate further gains.

Related: Bitcoin’s Weak Hand Is ‘Almost Gone’ As BTC Ignores Amazon, Meta Stocks Drop

Data from monitor resources coin glass Showing the shorts are on fire by returning to $21,000, the Oct. 29 tally totaled $95 million at the time of writing.

By contrast, a combined $661 million was delivered on October 25 and 26, compared to just $14 million in short sales that cleared the previous day.

BTC liquidation chart. Source: Coinglass.

“Retail businesses are all doing the same thing, I wonder why it doesn’t work,” says trading account IncomeSharks I have written on Twitter, quoting Cointelegraph article For liquidations affecting Ethereum (ethereum)shorts.

“Record the shorts at the bottom, the fluidization at the bottom. Follow the herd and slaughter it.”

The Oct. 29 ETH short liquidation had already reached $240 million at the time of writing, and appeared to surpass the previous day’s total.

ETH liquidation chart.Source: Coinglass

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