Bitcoin (BTC) remained range bound at the Wall Street open on October 6 as traders are already planning for a “violent” breakout.
1 hour BTC/USD candlestick chart (Bitstamp). Source: TradingView
Bitcoin whale activity highlights the importance of $19,000
I tracked data from Cointelegraph Markets Pro and TradingView BTC/USD as it moved up and down by just a few hundred dollars a day.
$20,000 formed a pivotal point for the pair, which faltered along with the consolidation of US stocks and the strength of the dollar.
With no local catalyst in sight in the short time frames, analytics resource Whalemap turned to broad buy and sell points to identify potential support and resistance.
On the downside, $19,174 identified a place to buy the whales, indicating their continued strength as a line in the sand.
In the meantime, the bullish advance should contend with a resistance cloud at $21,500.
“Don’t get distracted by noise,” the Whalemap team commented, along with a graph showing key levels overnight.
Detailed BTC/USD chart. Source: Whalemap / Twitter
As Cointelegraph reported, there was already $19,000 on the radar, reflecting the broader overall price being sold for the supply of bitcoin – the so-called “investor cost basis” of bitcoin.
Elsewhere, others are targeting $21,000 as a potential turning point in the event of an uptrend.
Open future interest nears record high of 604,000 BTC
On the longer time frames, meanwhile, popular trading account Daan Crypto Trades indicated an imminent BTC/USD triangle breakout after weeks of relatively sideways trading.
Related: BTC Price Hasn’t Reached the ‘Maximum Pain’ – 5 Things to Know in Bitcoin This Week
He summed up “$BTC the only two lines you need for the next week”.
Detailed BTC/USD chart. Source: Daan Crypto Trades / Twitter
In the derivatives markets, traders have steadily added a dry powder that could bring a “violent” end to the status quo.
“With bitcoin consolidating around $20,000, open interest in bitcoin is just below an all-time high of 604k bitcoins,” wrote Dylan LeClair, senior analyst at UTXO Management in a thread for the day.
“Whether it’s up or down, when bitcoin breaks out of its current range, it could potentially be a violent move.”