Bitcoin (BTC) experienced a decrease in volatility on October 6, as preparations for a potential downside in BTC price resurfaced. Despite trading within a narrow range around 1.5% lower, the cryptocurrency was inching closer to the $28,000 mark. However, market participants expressed concerns about potential losses in the future.
Trader Daan Crypto Trades observed a battle between two key moving averages (MAs) on one-day timeframes. He suggested that whichever MA gives in first will likely determine the trend for the rest of October. Furthermore, he highlighted increasing open interest (OI) across exchanges, which could lead to a squeeze of shorts followed by longs.
Data from CoinGlass showed minimal liquidations in both long and short BTC positions on October 6. Material Indicators analyzed whale trading behavior and found contradictory moves among different classes of whales. While some whales increased exposure, others sold their holdings.
Exitpump, another popular trading account, noted the potential for a liquidity grab below $27,400. The analysis suggested that price tends to test resistance levels multiple times before forming a top.
Overall, Bitcoin’s volatility eased on October 6, but market participants remained cautious about potential downside risks in BTC price.
Hot Take: Bitcoin’s Volatility Eases but Downside Risks Loom
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