The analysis concludes that retail traders are repeating past mistakes over and over as bulls have been selling BTC and ETH lately.


way down

Weekend trading got off to a good start as they attempted to recover to $21,000 on October 29th.

Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View
Dollar hides as BTC price recovers
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD jumping overnight to local highs of $21,078 on Bitstamp, enough to set new six-week highs.

The pair experienced a consolidation phase after its first drop to $21,000, trading above $21,000 for the first time since September 13.

The subsequent pullback was modest in nature, with Bitcoin not even testing $20,000 before rallying again.

At the end of the trading week on Wall Street on October 28, the price of BTC ended with US stocks, the S&P 500 and the Nasdaq Composite index up 2.5% and 2.9%, respectively.

In his latest Twitter update, popular crypto trader and analyst Il Capo continued the existing theory of how short-term price action will play out.

“The same,” he concluded, along with a chart showing potential up and down targets.

Explanatory chart of BTC/USD. Source: Il Capo from Crypto/Twitter
The macro warning came from trader John Wick, who warned that the US dollar could turn into assets at risk of pressure.

“Now we are watching to see if the green dot breaks above the track line over there,” he commented on the USD Index (DXY) chart:

“So this is a bad combination that led to the Fed announcement on November 1st.

Explanatory chart of the US dollar index (DXY). Source: John Wick/Twitter.
Wick was referring to the Federal Reserve’s announcement of a rate hike next week, which is expected to match the 0.75% hike in September.

ETH liquidation continues
It seems that the bulls remain skeptical about their ability to make more profits, and the number of liquidations of traders during the day has increased again.

Related: Bitcoin Weak Hands ‘Mostly Gone’ as BTC Ignores Falls in Amazon and Meta Stocks

Data from the monitoring resource Coinglass showed that short positions were reduced to $21,000, and at the time of this writing, the table of results for October 29 was $95 million.

On the contrary, only $14 million of short positions were liquidated the day before, and on October 25 and 26, combined, they brought in $661 million.

BTC liquidation schedule. Source: coin glass
“The retail industry is doing the same thing and wondering why it never works,” the IncomeSharks merchant account wrote on Twitter, citing a Cointelegraph article on liquidation affecting Ethereum.

way down


“Write shorts down, brushing down. Follow the herd and you will be killed.”
The ETH short liquidation on October 29 already totaled $240 million at the time of writing and seemed to outperform previous days.

ETH Liquidation Schedule. Source: coin glass
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Source: CoinTelegraph