Bitcoin (BTC) traded in an increasingly narrow range on September 6 as bets piled on the impending breakout.
BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
Binance futures giant sucks depleted BTC
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD staying below $20,000 for the fourth consecutive day as the bulls failed to break resistance.
As many have been wondering when and how the latest consolidation phase will end, two popular social media traders have noticed a trend of continued accumulation by a little-known entity of large-scale futures trading on Binance.
With retail investors selling off, this entity has spent several days sucking up liquidity, and the result is likely clear.
Crypto’s Il Capo predicted an “incoming bounce” in part of an update on the phenomenon, describing the entity’s long BTC position as “huge” and “easy” worth 30,000 BTC or more.
JACKIS trading account continued: “There is huge interest at $19,650 in Binance Futures.”
“We are seeing positions filled, the price goes up, then a new wave of selling comes in, and new orders hit again and repeat. It looks like someone is accumulating hard.”
Binance order book data uploaded to Twitter by on-chain monitoring sources, meanwhile, showed material indicators building resistance on September 6.
Binance order book chart. Source: Material Indicators / Twitter
Elsewhere, Crypto trader Tony warns that altcoins have been exceeding Bitcoin’s daily gains, something that calls for caution. Ethereum (ETH) surged 4% the day before the September 15 merger event.
“Bitcoin is not moving while Ethereum and Altcoins are moving, which makes sense as people try to get the most out of the upcoming consolidation,” he wrote on Twitter.
But those moves usually end up in a landfill, when this happens. So be careful.”
ETH/USD candlestick chart (Binance). Source: TradingView
The dollar continues to pressure
On the macro level, the US dollar was again the main focus as it reached multi-decade highs against a basket of trading partner currencies.
Related: BTC Price Sees New $20K Showdown – 5 Things to Know in Bitcoin This Week
The US Dollar Index (DXY) crossed 110.55 the day before the re-consolidation, further squandering the Euro and Yen in the process.
In a stark outlook for the coming year, the famous macro analytics account Fejau predicted the continued strength of DXY as the European energy crisis spreads.
The Federal Reserve, a widespread topic on Twitter made clear on Sept. 5, will be facing a stronger dollar that will have to be artificially tamed.
The report summed up: “We are on the cusp of experiencing a sovereign debt crisis stemming from the energy crisis in Europe, all the culmination of the 100-year deposit expiration.”