Bitcoin Algos Sell as BTC Price Struggles at $66K

Bitcoin (BTC) experienced a setback in its post-halving recovery on April 22 as automated trading algorithms flooded the market with sell orders. Despite reaching weekly highs of $66,546, the momentum of BTC’s price began to fade, and buyers faced strong resistance. The imbalance between buyers and algos selling resulted in a dull trading session. There were indications of bids between $64,000 and $65,500, as well as ask orders between $66,500 and $67,750. There is uncertainty surrounding the authenticity of these bid and ask orders, with some speculating they may be spoof orders.

An analyst pointed out the significance of Bitcoin’s 10-week simple moving average (SMA), which has served as a crucial support line for the bull market since October 2023. The 10-week SMA was observed at $65,686, further highlighting its significance in determining Bitcoin’s price movements. Trader Credible Crypto suggested that BTC/USD could undergo a downward correction to liquidate long positions before resuming its upward trajectory. Open Interest (OI) was already increasing, indicating the potential for further volatility in the market.

Despite the setbacks in BTC’s price, traders and analysts remain cautiously optimistic about the future. The presence of automated trading algorithms and the uncertain nature of bid and ask orders contribute to the challenging market conditions. With the 10-week SMA providing support and OI on the rise, there is anticipation for a significant upward movement in the near future.

It is essential for traders to remain informed and updated on real-time trade alerts to navigate the volatile market effectively. By subscribing to reliable sources and understanding the terms of services and privacy policy in place, traders can have access to crucial information that can guide their trading decisions.