Bitcoin (BTC), which lost $50,000 on Dec. 26, as the exchange inflows caught up to the cautiously optimistic mood, was the first time that Bitcoin (BTC) had fallen in a few days.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
New player increases $50,000 sales wall
Data from TradingView and Cointelegraph Markets Pro showed that volatility hit BTC/USD overnight Saturday.
Before the retracement began, the pair reached $51,500. This culminated in a plunge to $49,644. Bitcoin was at the time of writing back at $50,000.
This move was made in conjunction with an increase in inflows into major exchange Binance. Order book data showed that a new wall of resistance was being constructed at $50,000.
Heatmap chart for Binance order book. Source: Material Indicators
This behavior suggests that a large volume investor is shaping market bias. Binance was already suspect in this regard.
“This looks like an old player,” Material Scientist, a data analysis account noted in comments to Binance’s constantly-changing order books.
Balance chart for Binance BTC Source: Coinglass
The exchange balances rose by 60,000 BTC since Dec. 22 from 1.69 to 1.75 Million BTC, according to data from Coinglass, an on-chain monitoring resource.
Ethereum preserves $4,000 defense zone
Altcoin traders were relieved to see that most large-cap tokens have remained relatively unaffected by Bitcoin’s recent dip.
Related: Top Crypto Winners and Losers for 2021
At the time of writing, Ether (ETH), was still at $4,000
BITSTAMP: ETH/USD 1-hour candle charts Source: TradingView
Other top cryptocurrencies by market capital had losses less than 1.5%, or performed flat.
Pentoshi, a popular trader, highlighted $3,940-$4,000 in ETH/USD as an area bulls should defend moving forward.
“Currently long. I would like to see some momentum and a push up from this bottom. He said he was looking to sell between 4.4 and 4.5k.