Bitcoin stalls below $38K as analysis hints ‘Notorious B.I.D.’ is back

November 21, 2023 Alex Rustok

Bitcoin (BTC) sought to rematch 18-month highs into Nov. 21 as order book activity gave one analyst a sense of deja-vu.

BTC/USD 4-hour chart. Source: TradingView

Whale games conjure Bitcoin’s Q1 2023

Data from Cointelegraph Markets Pro and TradingView showed BTC price momentum building to top out at $37,770 the day prior.

Now circling $37,400, Bitcoin remained in a range, which had also characterized the second week of the month.

For on-chain monitoring resource Material Indicators, however, the market was more akin to Q1 this year — the period which marked the start of Bitcoin’s recovery from post-FTX lows.

Analyzing order book data, it suggested that a major liquidity provider which it informally called the “Notorious B.I.D.” at the time could be shaping bid support once again.

Specifically, bid liquidity had come and gone at $33,000 “7 times in the last 30 days,” it told X subscribers.

“I can’t confirm whether this is the entity I named Notorious B.I.D. back in Q1, but I can tell you we’ve seen this game played before.”

BTC/USDT liquidity data. Source: Material Indicators/X

An accompanying snapshot of BTC/USDT liquidity also showed sellers lining up at and immediately below $38,000.

Among whales, it was the largest order class — between $1 million and $10 million — which was the only active cohort, with others unanimously decreasing exposure through the week.

Commenting on the situation, Material Indicators co-founder Keith Alan argued that the entities behind the buy orders could be more organized than merely large-volume speculators.

“Swift breakdown” could follow tap of $40,000

Forecasting what could come next, meanwhile, Michaël van de Poppe, founder and CEO of trading firm Eight, refused to take $40,000 off the table.

Related: 70% of BTC dormant for a year — 5 things to know in Bitcoin this week

“Bitcoin continues to push higher and higher. Making higher lows, and attacking the resistance for the fourth time,” he commented on overnight events.

“Wouldn’t be surprised with a breakout upwards to $40K and then a swift breakdown again. Keep on buying the dips!”

BTC/USD annotated chart. Michaël van de Poppe/X

Popular analyst Matthew Hyland cautioned that relative strength index (RSI) could be at risk of printing a bearish divergence with price should the latter fail to pass current 18-month highs just below $38,000.

At the time of writing, bulls were still unable to summon the required momentum.

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.