Nov 16, 2023

Low Liquidity Above $33K – Bitcoin Price Drops 4%

Bitcoin analysis reveals low liquidity above $33K, causing BTC price to dip 4% - Latest crypto news from qnt, maker, on, newest, luna, muse, monavale, kadena, and polymath.
BTC price dips 4% as Bitcoin analysis reveals low liquidity above $33K

After the Nov. 16 Wall Street open, Bitcoin (BTC) experienced a classic pullback, which was reminiscent of previous BTC price action.

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Analysis: Door open to deeper BTC price correction

Data from Cointelegraph Markets Pro and TradingView saw Bitcoin dip to $36,470 — a drop of more than $1,000 on the day.

This followed the unsuccessful attempt by bulls to reach new highs and the consequent long liquidations earlier in the week.

At the time of writing, CoinGlass reported around $21 million of BTC longs being wiped out. This figure was significantly lower than the $120 million recorded on Nov. 14.

Commenting on the situation, market participants noted the cyclical nature of BTC price action, which leaves the possibility of both new highs and a deeper retracement open.

“While I maintain my view that the qnt crypto market is due for a correction, we still can’t rule out the possibility of another attempt at the $38k – $40k range,” said Material Indicators in its latest X post.

The post added that the approval of the first United States Bitcoin spot price exchange-traded fund (ETF) “would be a likely catalyst for such a move,” but that time was running out for this due to regulatory time constraints.

A snapshot of BTC/USDT order book liquidity showed increased sellside liquidity at $38,000, while bid volume was only present at $33,000.

“The path of least resistance is down for $BTC if we are going by the amount of resting orders waiting to get filled,” commented popular pseudonymous trader Horse monavale crypto on the matter.

Dollar weakness bolsters crypto outlook

The macroeconomic landscape was looking brighter on the day as the U.S. dollar weakened, undoing the gains it had made on Nov. 14.

This was due to the U.S. inflation data, which exceeded expectations and provided a boost to risk assets.

The U.S. dollar index (DXY) was back near 104 — close to its lowest levels since the beginning of September.

“DXY got slaughtered today, I’m not really surprised, it’s going much lower,” commented Bluntz, a well-known trader, in response to the previous move.

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