Bitcoin whales prefer to take a long position after the September CPI data. One of the biggest players in the market said that the volatility caused by this will result in the upside.
Whales long Bitcoin after CPI data
Bitcoin hit $18,300 after September’s CPI data came in higher than expected at 8.2%. However, the BTC price found new buyers hours after the CPI announcement. On October 14, it recovered yesterday’s 5% losses. According to the data, Bitcoin whales entered long positions simultaneously on Binance and Bitmex futures exchanges.
Interestingly, the whales are taking a long position as the BTC price drops to $18,3,000. The move is expected to come as a result of the US Energy Information Administration reporting a significant increase in crude oil inventories.
The market in general found the opportunity to recover with the gains in Bitcoin (BTC) price. However, this momentum was not enough to buy a spot that could empower Bitcoin bulls. Despite everything, Kaleo, one of the biggest players in the market, says that Bitcoin can reduce its correlation with the stock market.
Bitcoin points to 2017 levels in terms of supply on exchanges
Predictions fall short as BTC price struggles to find support above $19,000. Kaleo, a popular BTC whale, suggested that Bitcoin could reduce its correlation with the stock market. The analyst drew this conclusion using technical analysis to compare Bitcoin’s performance to other markets in a tweet on October 14:
Not only does Bitcoin look solid against the dollar, but it is on the verge of breaking a key resistance in the lower accumulation range where it has been stuck for the past four months.
Bitcoin’s volume, on the other hand, is climbing to bull market levels that have increased since August 1, while the volume in USDT becomes “parabolic.”
Bitcoin volume climbing to bull market levels.
Increasing since August 1st – 2W timeframe. pic.twitter.com/7hisnwi0u8— Bitcoin Archive (@BTC_Archive) October 14, 2022
Meanwhile, demand for BTC in the derivatives market is still low compared to demand levels at the beginning of the month. This is also evident from the decrease in the funding rate compared to its levels at the end of September. The open interest metric also indicated a similar result.
Some analysts say the momentum will extend to $3,500
Meanwhile, trading expert Gareth Soloway suggested that Bitcoin will drop further towards $3,500. Interestingly, he also warned that the move away from the stock market will not happen anytime soon. Earlier, Solloway said that the Bitcoin price will drop to “$12,000 to $13,000.” This is because “the dollar remains at its 20-year highs”. As Kriptokoin.com, we have covered Soloway’s current analysis in this article. BTC is trading around $19,300 at the time of writing.
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