It could still go either way for bulls in the run-up to what could still turn out to be the highest weekly close on record.
Bitcoin (BTC) is lining up a crucial weekly support test on Oct. 23 after impulsive sellers moved large amounts of BTC to major exchange Binance.
BTC dices with $60,000
The level had proven the first major area of buyer interest overnight after old all-time highs at $64,900 failed to prop up the market.
While analysts remain bullish on longer timeframes, the comedown is creating an interesting close to the current weekly candle.
Last week, #BTC Weekly Closed above a historical major resistance area (red)
This week, $BTC may be dipping towards the same area but this time to turn it into a support
— Rekt Capital (@rektcapital) October 22, 2021
Elsewhere, a popular theory revolves around a structured flushing out of overleveraged traders, these having pushed up funding rates to classic unsustainable levels during the run to $67,100 all-time highs.
Front-running the United States’ first Bitcoin ETF is likewise still a major topic of debate, as noted by popular Twitter account BitBit.
roughly 1.25 trillion dollars were injected into the market in a span of exactly 3 months, ahead of the ETF approval. now you tell me that some big pockets didn’t have this info way before you could guess.
— Bitbit BTFD (3, 3) (,) (,) crypto (@BitBitCrypto) October 23, 2021
Binance reserves shoot higher
While exchange balances broadly continue to trend lower, meanwhile, Binance has seen a dramatic uptick in its reserves in recent days.
Related: Price analysis 10/22: BTC, ETH, BNB, ADA, XRP, SOL, DOT, DOGE, LUNA, UNI
According to data from statistics resource Bybt, these increased by over 50,000 BTC to near 400,000 BTC as of Friday.
Exchange reserve upticks tend to signify a desire to sell or have BTC available to sell at short notice.