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
Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD hitting multi-week highs of $45,137 Friday as Wall Street got underway.
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 which had purchased BTC at the last low near $34,000 had now put in a significant ask position beginning at $45,000.
The finex whale who made the bottom (same signature) just showed up with a lot of asks presumably to close out those 34k longs. Something to watch in the coming days $BTC pic.twitter.com/gDR8qvBVEl
— Pentoshi (@Pentosh1) March 25, 2022
Blockware lead insights analyst William Clemente agreed, telling Twitter users that it was now “popcorn time” for the market.
For 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 into 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.
Overall still watching how #Bitcoin is going to react at resistance, and especially how $ETH will handle it there.Not a long area for me. pic.twitter.com/NalEyg6Jiu
— Michaël van de Poppe (@CryptoMichNL) March 25, 2022
Cardano (ADA), while dropping several percentage points on the day, was still up 35% compared to the same time last week, making it the top-ten’s best performer.
ADA/USD 1-day candle chart (Coinbase). Source: TradingView