What This Bitcoin Divergence Could Hint About BTC’s Price

Bitcoin trending downwards on smaller timeframes seems to indicate future losses. However, the market leader in cryptos has suffered a loss of 3% over the last week. But there may be some hope for bulls.

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Bitcoin (BTC), which trades at $20,000 as of the writing time, is currently experiencing a 1% loss over the last 24hrs.

Bitcoin BTC BTCUSD
The 4-hour chart shows BTC trending to the downside. Source: BTCUSD Tradeview

As a pseudonym trader pointed out, Bitcoin whales are currently buying into BTC’s price action and could be hinting at a future relief bounce. The trader used data provided by Material Indicators to show what the different investors’ classes are doing while BTC records losses.

The chart shows that bid orders exceeding $100,000 have increased the buying pressure of investors. This is in contrast to almost all other investor classes who sell into this price action. These BTC whales are known for creating price trends and anticipating this divergence may indicate a rebound. This is the pseudonym trading. explained:

While #bitcoin is at its lowest price, whales (purple), are being bought by the market. For future price action, purple has been historically the most significant class. It is clear that there has been divergence. Let’s hope it continues this time.

The chart shows that Bitcoin whales, which are shown in brown in the chart, saw an increase in their buying orders after BTC returned to around $20,000. This investor class has been mostly dormant in the current market environment, but their recent involvement highlights the importance of BTC’s current levels.

Bitcoin BTC BTCUSD 1 MI
BTC Whales (purple, brown and blue on the chart), buying into current PA. Source: Material Indicators

In that sense, Material Indicators records massive bid orders for BTC’s price around this area from $19,900 to $20,000. This level alone has over $20,000,000 of bid orders. An additional $6 Million is available at approximately $19500. Over $10 million ranges from $19,000- $19,000.

Also, Bitcoin appears to have sufficient liquidity to keep at current levels.

Bitcoin BTC BTCUSD 2 MI
BTC’s price with important levels of support (blocks in yellow and red below the price) on lower timeframes. Source: Material Indicators

Can Bitcoin the Bitcoin Bulls Score a Green Monthly Candle

Material Indicators also provides data that indicates a crucial liquidity area between $17,000-$20,000,000. Large market participants could attempt to push down the price to fill these orders which could hinder the bulls’ attempts to save the monthly candle.

Material Indicators Analysts wrote:

Bulls are defending the 2017 Top, but with one day to go it’s going to be almost impossible to print a green Monthly candle. Green on the Weekly is possible. Expecting volatility. Bitcoin will either explode or collapse very quickly.

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After a possible retest at the year lows, analysts anticipate some relief. If BTC falls $17,500, any bullish thesis will be invalidated.

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