Bitcoin (BTC) attempted to retake $21,000 on Oct. 29 as weekend trading began on a strong footing.
Dollar lurks as BTC price rebounds
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it rebounded overnight to local highs of $21,078 on Bitstamp โ enough to clinch new six-week highs.
The pair had seen a consolidatory phase ensue after its first trip to the $21,000 mark, the first time it had traded above $21,000 since Sep. 13.
The subsequent retracement was modest in character, Bitcoin not even testing $20,000 before reversing higher once more.
The end of the Wall Street trading week saw BTC price action follow United States equities, the S&P 500 and Nasdaq Composite Index finishing Oct. 28 up 2.5% and 2.9%, respectively.
In his most recent Twitter update, popular trader and analyst Il Capo of Crypto maintained an existing theory over how short-term price action would unfold.
โSame same,โ he summarized alongside a chart showing potential upside and downside target levels.
A cautionary macro note came from fellow trader John Wick, who warned that the U.S. dollar may make a return to pressure risk assets.
โNow we watch to see if we get a green Dot breaking above the Track line there,โ he commented on a chart of the U.S. dollar index (DXY).
โIf so thatโs a bad combo leading into Fed announcement Nov 2nd.โ
Wick was referring to next weekโs Federal Reserve announcement on interest rate hikes, these widely expected to match Septemberโs 0.75% increase.
ETH liquidations keep coming
Seemingly still skeptical of bullsโ abilities to produce further gains, trader liquidations were once again mounting on the day.
Related:ย Bitcoin weak hands โmostly goneโ as BTC ignores Amazon, Meta stock dip
Data from monitoring resource Coinglass showed shorts getting burned by the return to $21,000, with the tally for Oct. 29 totaling $95 million at the time of writing.
By contrast, the day prior had seen just $14 million of liquidated shorts, while Oct. 25 and 26 combined delivered $661 million.
โRetail all does the same thing and wonders why it never works out,โ trading account IncomeSharks wrote on Twitter, citing a Cointelegraph article on liquidations impacting Ethereum (ETH) shorts.
โRecord shorts at the bottom, record liqudiations at the bottom. Follow the herd and get slaughtered.โ
ETH short liquidations on Oct. 29 were already at $240 million at the time of writing and looked set to eclipse previous daysโ totals.
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