A whale who bought at $34,000 now looks set to sell near current levels as a large wall of asks appears on Bitfinex.
Bitcoin (BTC) was up nearly 5% in 24 hours at the Wall Street open on March 25, but a new warning sign was giving traders cold feet.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Bitfinex whale flips to sell mode
As $45,000 reappeared for the first time since the start of the month, however, so did all-too-familiar behavior among some of Bitcoin’s biggest investors.
Attention turned to exchange Bitfinex on the day, a platform famous for large-volume traders, or whales, guiding short-term price action with their trades.
As noted by popular trader Pentoshi, the entity that had purchased BTC at the last low near $34,000 had now put in a significant ask position beginning at $45,000.
— Pentoshi (@Pentosh1) March 25, 2022
Blockware lead insights analyst William Clemente agreed, telling Twitter users that it was now “popcorn time” for the market.
Cointelegraph contributor Michaël van de Poppe, meanwhile, flagged “a dozen” possible lower price targets should BTC/USD sweep liquidity at previous rejection points from March, these also lying just above $45,000.
“I’m not saying I’m bearish at this stage, but while we’re making this build-up, I’m not really interested in longs at this point,” he said in his latest YouTube update.
Only a rechallenge of $50,000, he added, would form the impetus to consider long positions.
“No longs” on Ethereum, says trade
Van de Poppe added that altcoins were also on the radar and that it would be interesting to see how Ether (ETH), in particular, deals with upcoming resistance.
The top ten cryptocurrencies by market cap showed clear copycat strength on daily timeframes, led by ETH/USD, which matched Bitcoin’s 5% gains.
Not a long area for me. pic.twitter.com/NalEyg6Jiu
— Michaël van de Poppe (@CryptoMichNL) March 25, 2022
ADA/USD 1-day candle chart (Coinbase). Source: TradingView