{"id":25133,"date":"2023-11-16T15:47:21","date_gmt":"2023-11-16T15:47:21","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/btc-price-dips-4-as-bitcoin-analysis-reveals-low-liquidity-above-33k\/"},"modified":"2023-11-16T15:47:24","modified_gmt":"2023-11-16T15:47:24","slug":"btc-price-dips-4-as-bitcoin-analysis-reveals-low-liquidity-above-33k","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/btc-price-dips-4-as-bitcoin-analysis-reveals-low-liquidity-above-33k\/","title":{"rendered":"BTC price dips 4% as Bitcoin analysis reveals low liquidity above $33K"},"content":{"rendered":"
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Bitcoin (BTC) saw a classic pullback after the Nov. 16 Wall Street open as deja vu BTC price action continued.<\/p>\n

BTC\/USD 1-hour chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

Analysis: Door open to deeper BTC price correction<\/h2>\n

Data from Cointelegraph Markets Pro and TradingView followed Bitcoin as it descended to $36,470 \u2014 down over $1,000 on the day.<\/p>\n

The landscape closely followed events from earlier in the week, where bulls failed to flip new highs to support and endured long liquidations.<\/p>\n

These were less present on the day, with around $21 million of BTC longs wiped out at the time of writing, per data from monitoring resource CoinGlass. On Nov. 14, the tally reached $120 million.<\/p>\n

BTC liquidations (screenshot). Source: CoinGlass<\/em><\/figcaption><\/figure>\n

Commenting on the status quo, market participants noted the repetitive nature of BTC price action, which left the possibility for both new highs and a deeper retracement open.<\/p>\n

\u201cWhile I maintain my view that the market is due for a correction, we still can’t rule out the possibility of another attempt at the $38k – $40k range,\u201d on-chain monitoring resource Material Indicators wrote<\/a> in part of its latest X post.<\/p>\n

It added that news on the first United States Bitcoin spot price exchange-traded fund (ETF) \u201cwould be a likely catalyst for such a move,\u201d but that time was running out for this thanks to regulatory time constraints.<\/p>\n

An accompanying snapshot of BTC\/USDT order book liquidity showed sellside liquidity building at $38,000, with complementary bid volume only present at $33,000.<\/p>\n

BTC\/USDT order book liquidity chart. Source: Material Indicators\/X<\/em><\/figcaption><\/figure>\n

\u201cThe path of least resistance is down for $BTC if we are going by the amount of resting orders waiting to get filled,\u201d popular pseudonymous trader Horse continued<\/a> on the topic. <\/p>\n

\u201cMy thinking is that this recent spike up was easy due to an empty pocket left by liquidations and that anyone waiting for the dip passively added long at market.\u201d<\/p><\/blockquote>\n

Dollar weakness bolsters crypto outlook<\/h2>\n

The macro picture was cool on the day as U.S. dollar weakness reentered, cancelling out a recovery from a precipitous drop on Nov. 14.<\/p>\n

Related:\u00a0$48K is now \u2018reasonable\u2019 BTC price target \u2014 DecenTrader\u2019s Filbfilb<\/em><\/strong><\/p>\n

This came at the hands of U.S. inflation data, which came in more positive than expected in a complimentary surprise for risk assets.<\/p>\n

The U.S. dollar index (DXY) was back near 104 \u2014 near its lowest levels since the start of September.<\/p>\n

\u201cDXY got slaughtered today, would say im surprised, but im not really, going much lower,\u201d popular trader Bluntz reacted<\/a> to the previous move. <\/p>\n

\u201cDon’t underestimate how GOOD this is for crypto.\u201d<\/p><\/blockquote>\n

U.S. dollar index (DXY) 1-day chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

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.\n<\/p>\n<\/div>\n