TL;DR
- Bitcoin bid liquidity has dropped to $62,500 while the price faces difficulties at the Wall Street open.
- BTC price has hit a low of $63,128, showing signs of short-term weakness and possible corrections.
- Analysts, including Material Indicators and QCP Capital, warn of downward pressure and a potential “Bart Simpson” maneuver in BTC price.
Bitcoin liquidity has fallen to $62,500 while its price struggled at the Wall Street open. This decline in liquidity occurs amid the struggle to capitalize on last week’s favorable macroeconomic news.
Despite positive news regarding the U.S. macroeconomic environment, Bitcoin’s price has shown signs of weakness in short timeframes, remaining below $64,000. In particular, the price hit a low of $63,128 on Bitstamp, the lowest level since before the weekend.
TLDR: There are NO straight lines.
FireCharts shows Bitcoin bid liquidity moving down to $62.5k. Moves like this tend to draw price downward. It also tends to lure in late shorts.
Be mindful of your positions and resist the urge to overtrade.
Expecting volatility through… pic.twitter.com/F3VbPIdTAL
— Material Indicators (@MI_Algos) August 26, 2024
Analysts are warning of a possible short-term correction in BTC price. Material Indicators has noted that buy liquidity on Binance has decreased to $62,500, which could exert downward pressure on the price.
Additionally, the platform’s analysis suggests that the lack of aggressive follow-through in BTC price might indicate weakness. Traders are watching for a potential “Bart Simpson” maneuver, where the price could experience a sharp drop to previous levels.
Bitcoin Shows Signs of Weakness
Popular traders, such as Crypto Chase and Jelle, have expressed skepticism about Bitcoin’s ability to sustain a rally. Jelle pointed out that, although the market appears stronger compared to similar situations in the past, the lack of aggressive price momentum could be a sign of weakness. Crypto Chase, in turn, warned that BTC’s price has not shown the type of follow-through typically expected after a rally.
Trading firm QCP Capital has also expressed surprise at the absence of sustained upside. The firm noted that the market seemed well-positioned for this move and that BTC and ETH volatility are more skewed towards puts than calls until October. QCP Capital expects the BTC/USD price to remain in a range between $62,000 and $67,000 in the near term.
