All Eyes on FED: Big Warning From Bitcoin Analysts!

According to one analyst, individual traders repeat past mistakes over and over. The analysis concludes as the bulls smoke the late Bitcoin (BTC) and Ethereum (ETH) shorts. We have compiled the BTC claims and analyzes of analysts for our readers.

Dollar lurks as bitcoin price recovers

Koindeks.com As you follow, the leading crypto Bitcoin (BTC) jumped to local highs of $ 21,078 overnight. This breakthrough was enough to clinch the new peaks of six weeks. BTC traded above $21,000 for the first time since September 13. Bitcoin entered a consolidation phase after its first trip to $21,000.

The ensuing retreat was modest in character. Bitcoin didn’t even test $20,000 before breaking out once again. By the end of the week of Wall Street process, BTC saw price action follow US equities. The S&P 500 and the Nasdaq Composite Index ended October 28 with increases of 2.5% and 2.9%, respectively. Recognized analyst Crypto Capo put forward an existing theory on how short-term price action will unfold in his latest Twitter post. ‘Same’ summarized alongside a graph showing potential top and bottom goal levels.

BTC caption / Source: Crypto Capo / Twitter

Another analyst, John Wick, warned that US dollar pressure could return to risky assets. Therefore, he drew attention to a cautious macro note. He commented on a chart of the US dollar index (DXY):

So that’s a bad combination leading up to the Fed announcement on Nov.

US dollar index (DXY) explanatory chart / Source: John Wick/ Twitter

Wick referred to the Federal Reserve’s announcement of interest rate hikes next week. These were expected to match the 0.75% gain in September.

ETH liquidations keep coming

It seems that bulls are still skeptical of their ability to generate more profits. In this environment, trader liquidations increased once again during the day. Coinglass data showed that shorts hit $21,000 to return. It also revealed that the total for October 29 was $95 million. In contrast, the previous day only saw $14 million in liquidated shorts, while October 25 and 26 together gave $661 million.

Bitcoin liquidation chart / Source: Coinglass

For liquidations affecting Ethereum (ETH) shorts, analyst IncomeSharks said, “Individual all do the same thing. Then they wonder why it didn’t work at all. Record the shorts at the bottom, the purges at the bottom. Follow the herd and you are slaughtered,” he said. ETH short liquidations on October 29 were $240 million at the time of writing. This is about to overshadow the sum of the previous days.

ETH liquidation chart / Source: Coinglass

3 reasons why bitcoin price will drop soon

After a long hiatus, Bitcoin is always showing signs of strength without a downward curve. However, a Bitcoin price drop could always be just around the corner, especially in the current bear market scenario. In the current range, BTC maintains an impressive weekly gain of around 9%. However, certain on-chain indicators point to a possible Bitcoin price drop in the short term. On the other hand, some of the BTC investors hope that a bull run will start with this rally. Crypto analyst Anvesh Reddy shares his insights.

BTC saw great liquidity on exchanges at $ 21,400. This is a potential sign that the market expects a local bottom at that level and then a price drop. Also, it is possible for large investors to want to open shorts to make a profit in case of a price drop. According to Crypto Quant data, a large amount of Bitcoin was transferred to stock markets in a short time.

Overall, there is high capital flow in terms of BTC in the current scenario. It is possible to see this clearly from the increasing open interest in the BTC derivatives market. Also, stablecoins have also been sent to exchanges recently, as a potential sign of investors looking to go short. It is also possible for investors to want to take advantage of the price correction opportunity.

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