Bitcoin (BTC) chose compression over the Easter weekend, sparing nervous traders a fresh dive below $40,000.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Derivatives traders take no risks
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD acting in a narrowing range with $40,700 as its ceiling Saturday and Sunday.
The pair saw little action as the holiday period began, with United States equities markets off from Good Friday onwards, allowing crypto to avoid correlation-based volatility.
With Monday likewise a non-trading day, Bitcoin was set for four days of “out-of-hours” trading. While that meant its stocks correlation mattered less, there were other forces at play ready to spook sentiment.
Market liquidity stayed lower than on workdays, and while standard, some feared that any sudden moves could be exacerbated as a result of thinner order books.
Analyzing derivatives moves over the weekend, Deribit Insights, the research arm of trading platform Deribit, flagged liquidity as one consideration influencing real-time investor decisions.
5) So while this could be a bearish bet, it is also likely protective of AUM.
But why now?
Perhaps they are concerned about Spot/deriv market manipulation over an illiquid weekend.
Perhaps just concerned over the next week against falls pic.twitter.com/spNXiurWqr
— Deribit Insights (@DeribitInsights) April 16, 2022
A slight zoom-out from popular trader and commentator Pentoshi meanwhile delivered a more wary perspective.
For him, only a reclaim of levels significantly beyond the current narrow trading range on low timeframes would suffice for a more bullish feeling on what could come next for BTC/USD.
“44.5k most important spot for bullish momentum currently. 42k 1D Resistance,” he summarized to Twitter followers on Saturday alongside an explanatory chart.
“Below bias is for re-distribution and another leg down. Think buyers need to step in pretty quickly.”BTC/USD annotated chart. Source: Pentoshi/ Twitter
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