Bitcoin hits new 6-week high as Ethereum liquidates $240M more shorts

Bitcoin (BTC) attempted to retake $21,000 connected Oct. 29 arsenic play trading began connected a beardown footing.

BTC/USD 1-hour candle illustration (Bitstamp). Source: TradingView

Dollar lurks arsenic BTC terms rebounds

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD arsenic it rebounded overnight to section highs of $21,078 connected Bitstamp — capable to clinch caller six-week highs.

The brace had seen a consolidatory signifier ensue aft its first trip to the $21,000 mark, the archetypal clip it had traded supra $21,000 since Sep. 13.

The consequent retracement was humble successful character, Bitcoin not adjacent investigating $20,000 earlier reversing higher erstwhile more.

The extremity of the Wall Street trading week saw BTC terms enactment travel United States equities, the S&P 500 and Nasdaq Composite Index finishing Oct. 28 up 2.5% and 2.9%, respectively.

In his astir caller Twitter update, fashionable trader and expert Il Capo of Crypto maintained an existing theory implicit however short-term terms enactment would unfold.

“Same same,” helium summarized alongside a illustration showing imaginable upside and downside people levels.

BTC/USD annotated chart. Source: Il Capo of Crypto/ Twitter

A cautionary macro enactment came from chap trader John Wick, who warned that the U.S. dollar whitethorn marque a instrumentality to unit hazard assets.

“Now we ticker to spot if we get a greenish Dot breaking supra the Track enactment there,” helium commented connected a illustration of the U.S. dollar scale (DXY).

“If truthful that’s a atrocious combo starring into Fed announcement Nov 2nd.”

U.S. dollar scale (DXY) annotated chart. Source: John Wick/ Twitter

Wick was referring to adjacent week’s Federal Reserve announcement connected involvement complaint hikes, these wide expected to lucifer September’s 0.75% increase.

ETH liquidations support coming

Seemingly inactive skeptical of bulls’ abilities to nutrient further gains, trader liquidations were erstwhile again mounting connected the day.

Related: Bitcoin anemic hands ‘mostly gone’ arsenic BTC ignores Amazon, Meta banal dip

Data from monitoring assets Coinglass showed shorts getting burned by the instrumentality to $21,000, with the tally for Oct. 29 totaling $95 cardinal astatine the clip of writing.

By contrast, the time anterior had seen conscionable $14 cardinal of liquidated shorts, portion Oct. 25 and 26 combined delivered $661 million.

BTC liquidations chart. Source: Coinglass

“Retail each does the aforesaid happening and wonders wherefore it ne'er works out,” trading relationship IncomeSharks wrote connected Twitter, citing a Cointelegraph article connected liquidations impacting Ethereum (ETH) shorts.

“Record shorts astatine the bottom, grounds liqudiations astatine the bottom. Follow the herd and get slaughtered.”

ETH abbreviated liquidations connected Oct. 29 were already astatine $240 cardinal astatine the clip of penning and looked acceptable to eclipse erstwhile days’ totals.

ETH liquidations chart. Source: Coinglass

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.