Giant Bitcoin Selling Walls on Binance: What’s Next?

Giant Bitcoin Selling Walls on Binance: What’s Next?
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According to its analytical source, Bitcoin (BTC) wants to retest its all-time high of $20,000 in 2017. BTC price action is knocking down resistance levels as $20,000 gets even closer. However, many are not convinced that the Bitcoin bull run will last longer.

Is Bitcoin price action a breakout or invalid?

The president crypto Bitcoin has crossed the $19,000 mark. Because traders are hoping that the one-week fast gains will continue. BTC quickly removed sell-side liquidity overnight. Also, on-chain analytics resource Material Indicators states that the $20,000 mark could be retested. In part of a Twitter discussion on January 12, he shared the following assessment:

It looks like BTC is preparing for a resistance test again at the top of 2017. It is not clear now whether we will see a well-intentioned break or a bogus exit. It’s time for patience and discipline.

In the middle, an accompanying snapshot of the Binance command book confirmed that the bulls had breached multiple sell walls. “Things are getting interesting now,” Material Indicators added in the comments on the chart.

bitcoinBTC ledger data (Binance) / Source: Material Indicators / Twitter

“This is a big bull trap!”

As characteristic of the current climate, others remain firmly risk-averse in Bitcoin despite the year-to-date interests approaching 20%. In the midst of these was renowned analyst Crypto Capo, who classically described the current price action as “one of the biggest bull traps he has ever seen.” “The bull enthusiasm is real and the price is still below 20k,” the analyst added.

Another well-known analyst, Michaël van de Poppe, similarly warned of very optimistic reactions to BTC price performance. The analyst explained his views on this bet as follows:

Funny though, if you look at social media, it’s bull enthusiasm. If you watch the chart, you have to zoom out very far to see the whole chart. Bitcoin was $50,000 compared to 15 months ago.

Giant Bitcoin Selling Walls on Binance: What's Next?

Bitcoin awakens from its ‘volatility sleep’

Whatever its staying power, Bitcoin’s recent rally contrasts strongly with the apparent lack of volatility witnessed since the FTX boom of early November. For on-chain analytics firm Glassnode, this kind of behavior was likely due to a jolt sooner rather than later, especially given that it continued through the 2022 annual candle close. In his weekly newsletter, ‘The Week On-Chain’, published on January 9, he explains:

The 2022-23 holiday period was historically quiet. Moreover, it is rare for such conditions to persist for long. Past situations where BTC and ETH volatility were this low precede highly volatile market environments with past examples trading both higher and lower.

Glassnode calls this phenomenon ‘volatility sleep’. In line with this, he adds that “despite a short-term increase following FTX, on-chain activity for the two major cryptos remains extremely weak.” In addition, it highlights the following:

Using both on-chain activity and the actual limit drops, it is possible to say that the surpluses of the second half of 2021 have been largely removed from the system. This process has been painful for investors. However, it has brought market prices closer to the underlying fundamentals.

Giant Bitcoin Selling Walls on Binance: What's Next?Bitcoin historical volatility index (BVOL) 1-week candlestick chart / Source: TradingView

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