Bitcoin stalls below $38K as analysis hints ‘Notorious B.I.D.’ is back

Bitcoin ( BTC ) sought to rematch 18-month highs into Nov. 21 as order book activity gave one analyst a sense of deja vu.

Whale games conjure Bitcoin’s Q1 2023

Data from Cointelegraph Markets Pro  and TradingView showed BTC price momentum building to top out at $37,770 the day prior.

Now circling $37,400, Bitcoin remained in a range that had also characterized the second week of the month.

For on-chain monitoring resource Material Indicators, however, the market was more akin to Q1 this year — the period that marked the start of Bitcoin’s recovery from post-FTX lows.

Analyzing order book data, it suggested that a major liquidity provider,  which it informally called the “Notorious B.I.D.” at the time, could be shaping bid support once again.

Specifically, bid liquidity had come and gone at $33,000 “7 times in the last 30 days,” it told X (formerly Twitter) subscribers.

“I can’t confirm whether this is the entity I named Notorious B.I.D. back in Q1, but I can tell you we’ve seen this game played before.”

An accompanying snapshot of BTC/USDT liquidity also showed sellers lining up at and immediately below $38,000.

Among whales, it was the largest order class — between $1 million and $10 million — which was the only active cohort, with others unanimously decreasing exposure through the week.

Commenting on the situation, Material Indicators co-founder Keith Alan argued that the entities behind the buy orders could be more organized than merely large-volume speculators.

“Swift breakdown” could follow tap of $40,000

Forecasting what could come next, meanwhile, Michaël van de Poppe, founder and CEO of trading firm Eight, refused to take $40,000 off the table.

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“Bitcoin continues to push higher and higher. Making higher lows, and attacking the resistance for the fourth time,” he commented on overnight events.

“Wouldn’t be surprised with a breakout upwards to $40K and then a swift breakdown again. Keep on buying the dips!”

Popular analyst Matthew Hyland cautioned that the relative strength index (RSI) could be at risk of printing a bearish divergence with price should the latter fail to pass current 18-month highs just below $38,000.

At the time of writing, bulls were still unable to summon the required momentum.