The Return of Notorious B.I.D.: Bitcoin Struggles to Surpass $38K Mark

Bitcoin Seeks to Rematch 18-Month Highs as Order Book Activity Signals Deja-vu

Bitcoin Seeks to Rematch 18-Month Highs as Order Book Activity Signals Deja-vu

Bitcoin (BTC) is aiming to reach its 18-month highs again, as order book activity gives analysts a sense of deja-vu. Data from Cointelegraph Markets Pro and TradingView shows that BTC price momentum has been building, with a top out at $37,770 the day before. Currently circling the $37,400 mark, Bitcoin remains in a range similar to that of the second week of the month.

For on-chain monitoring resource Material Indicators, the market resembles the first quarter of this year, which marked the start of Bitcoin’s recovery from post-FTX lows. Analyzing order book data, Material Indicators suggests that a major liquidity provider, informally called the “Notorious B.I.D.” at the time, could be shaping bid support once again. The bid liquidity has come and gone at $33,000 seven times in the last 30 days.

In an accompanying snapshot of BTC/USDT liquidity, sellers are seen lining up at and below $38,000. Among whales, the largest order class, between $1 million and $10 million, is the only active cohort, with others decreasing their exposure throughout the week. Keith Alan, co-founder of Material Indicators, argues that the entities behind the buy orders could be more organized than just large-volume speculators.

Looking ahead, MichaĆ«l van de Poppe, founder and CEO of trading firm Eight, refuses to take $40,000 off the table. He believes that Bitcoin could continue to push higher and higher, making higher lows and attacking the resistance for the fourth time. He wouldn’t be surprised if there is a breakout upwards to $40,000, followed by a swift breakdown. Poppe advises to keep buying the dips.

However, popular analyst Matthew Hyland cautions that the relative strength index (RSI) could print a bearish divergence with price if it fails to pass the current 18-month highs just below $38,000. At the time of writing, bulls are still unable to gather 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.

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