BTC price action reflects a tug-of-war between weak bulls and bears, but Bitcoin breaking down is firmly on the cards
bullish momentum is “fading” as liquidity shifts preempt a volatile move, a new analysis warns.
In an X post on Sep. 6, Keith Alan, co-founder of monitoring resource Material Indicators, flagged fresh shifts on the Binance order book.
Analyst: Bitcoin bulls and bears both lack “real strength”
BTC’s price has stayed tightly rangebound since the weekend, but exchange data suggests that the status quo may be about to change.
Publishing a snapshot of the BTC/USD order book on Binance, Alan cautioned over what he called “concerning” changes in liquidity.
Bid support moved down to concentrate around $24,600 on the day, with that price level not seen on spot markets since March.
“What is most concerning here is that the largest concentrations of BTC bid liquidity have now moved below the previously established Lower Low at the bottom of the range,” part of an accompanying commentary stated.
BTC/USD put in its lowest post-March dip in mid-June, reaching $24,750 before reversing higher, data from Cointelegraph Markets Pro and TradingView confirms.
Continuing, Alan said that he envisioned a similar bounce from current spot levels before any downside returned.
“From a macro perspective, I do expect to see price breakdown eventually, so the thought of printing a new LL isn’t surprising, but I did expect to see a stronger short term rally from this range before that happens,” he wrote.
That said, bears are yet to gain the upper hand entirely.
“At this stage, I’m not seeing either side establish any real strength, in fact, IMO, this move doesn’t indicate strength in bearish momentum as much as it indicates that bullish momentum and sentiment seem to be fading,” he concluded.
“Whatever the case, I do not trust those buy walls to just sit there and get filled.”
Alan previously highlighted $24,750 as the line in the sand for bulls to hold in order to protect the wider Bitcoin price uptrend.
“Another big move brewing” for Bitcoin
Elsewhere, popular trader Skew agreed that volatility should soon return, pointing to activity on derivatives markets.
Fellow trader Credible Crypto, known for his comparative optimism on BTC price prospects, also hoped that the downside would be limited to the high $24,000 range.
“The local low on major liquid/spot exchanges is at 25.2k,” he told X subscribers on the day alongside an explanatory chart.
“Would love to see those lows taken while still holding the higher timeframe low at 24.8k (which is the more important one) before a reversal back up to fill the inefficiency above us into supply (red).”
Source: Cointelegraph
Recent Comments