Bitcoin risks ‘exit pump’ on 3-month DXY highs as BTC price hits $68K
2024.10.16 11:58
Bitcoin (BTC) circled $68,000 on Oct. 16 after setting new 11-week highs into the Wall Street open.
BTC/USD 1-hour chart. Source: TradingView
BTC price gyrates around 11-week highs
Data from Cointelegraph Markets Pro and TradingView showed BTC price upside resuming as bulls eclipsed the peak of a leverage-driven “fakeout” the day before.
Volatility was noticeable, and analyzing order book conditions, popular trader and analyst Skew warned over manipulation.
“Very active spoofing going on here today,” he wrote on X about the Binance spot market.
“1% – 2.5% gap between ask & bid liquidity so without passive flows there’s room for taker driven volatility today.”
BTC/USDT 5-minute chart. Source: Skew/X
Skew noted that below $67,000, late long positions on derivatives markets were at risk of collapsing in a liquidation cascade.
Source: Skew
The bulk of buying pressure, meanwhile, came from Binance and Bitfinex spot buyers around the Wall Street open, who mimicked moves from the day prior.
Data from monitoring resource Material Indicators meanwhile captured en masse exposure increases among both larger and smaller investors.
“FireCharts binned CVD once again shows all order classes buying Bitcoin,” it told X followers, referring to one of its proprietary trading tools.
“Bid liquidity is stacking above $66k and $70k is coming into focus. Do BTC Bulls have enough momentum to make a sustainable run to ATH territory?”
BTC/USDT order book data for Binance. Source: Material Indicators/X
Some were more than confident that sellers would capitulate to the return of the bull market.
Among them was crypto trader, analyst and entrepreneur Michaël van de Poppe, who gave a deadline of a matter of weeks until BTC price discovery.
“Bitcoin is aiming for a new all-time high,” he predicted on the day.
“The trend has switched. I think we’ll see this happening in the next 3-4 weeks that we’ll see that all-time high and likely $90K before EOY.”
BTC/USD 12-hour chart with RSI data. Source: Michaël van de Poppe/X
Dollar surge makes Bitcoin traders nervous
In a curious contrast, BTC/USD gained in tandem with the US dollar, the two indexes breaking with their traditional inverse correlation.
Related: Bitcoin profit-taking nears $74K peak as speculators send Binance $500M
The US dollar index (DXY) reached 103.45, its highest level since Aug. 8, another day on which BTC/USD had a major upside of nearly 12%.
US Dollar Index (DXY) 1-day chart. Source: TradingView
Considering the implications, crypto social media was abuzz with caution.
“The monster is back. DXY is a day or two away from reclaiming every major ema,” popular trading account Max Price forecast.
DXY scores of 110 or more could come within a “relatively quick period of time,” it suggested.
“Keep an eye on this as btc may be exit pumping in anticipation,” the post concluded, stressing that explanation of Bitcoin’s strength was only one possibility.
US Dollar Index (DXY) 1-week chart. Source: Max Price/X
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
