The Bitcoin (BTC) market showed signs of reaching 18-month highs on Nov. 21, with order book activity sparking a sense of deja-vu for one analyst.

Whale Activity Resembles Bitcoin’s Q1 2023

Data from Cointelegraph Markets Pro and TradingView indicated that BTC’s price momentum surged to nearly $37,770 the day before but has since settled around $37,400, maintaining a similar range observed in the second week of the month.

According to Material Indicators, the market’s behavior resembled that of Q1 2023 when Bitcoin started recovering from post-FTX lows. The analysis of order book data suggested the presence of a significant liquidity provider, humorously named “Notorious B.I.D.” during that period, potentially shaping bid support once again.

An accompanying snapshot of BTC/USDT liquidity also revealed sellers forming at and just below the $38,000 mark, with the largest order class—ranging between $1 million and $10 million—showing the most activity, while others reduced their exposure throughout the week.

Keith Alan, co-founder of Material Indicators, suggested that the entities behind the buy orders might be more organized than just large-volume speculators. He further commented on the situation through a tweet, indicating the recurring pattern of the bid wall and MegaWhales’ actions.

“Swift Breakdown” Could Follow $40,000 Tap

Michaël van de Poppe, founder and CEO of trading firm Eight, expressed the possibility of Bitcoin ascending to $40,000 and then experiencing a rapid downturn. Meanwhile, popular analyst Matthew Hyland warned of a potential bearish divergence if Bitcoin failed to surpass the current 18-month highs just below $38,000, as indicated by the relative strength index (RSI).

As of the time of writing, bulls were struggling to gather the necessary momentum.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Frequently Asked Questions (FAQs)

What is the significance of the ‘Notorious B.I.D.’ in the Bitcoin market?

The term ‘Notorious B.I.D.’ is informally used to refer to a major liquidity provider that has been observed shaping bid support in the Bitcoin market. The presence of this entity has been noted in the past, particularly during the market’s recovery phase.

What are the potential price movements for Bitcoin in the near future?

Market analysts have suggested the possibility of Bitcoin reaching $40,000 and then dropping swiftly. Additionally, there are warnings of a bearish divergence if Bitcoin fails to surpass the current 18-month highs just below $38,000, as indicated by the relative strength index (RSI).