Bitcoin (BTC) grinded downwards following the Wall Street open on August 26, as analysts issued warnings of a possible short-term price correction.
Bitcoin (BTC) grinded downwards following the Wall Street open on August 26, as analysts issued warnings of a possible short-term price correction. The cryptocurrency’s value struggled to gain momentum, falling 1.51% over the past 24 hours, sparking concerns about an impending downturn.
Bitcoin showed signs of weakness, and struggled to trade above the $64,000 mark. BTC briefly touched $62,727, according to CoinMarketCap data. This dip prompted cautious commentary from several prominent market analysts.
Material Indicators, a popular trading resource, shared on X that “TLDR: There are NO straight lines,” underscoring the unpredictable nature of Bitcoin’s trajectory. Accompanying their post was a chart from one of their proprietary trading tools, which revealed that the order book liquidity on Binance, the world’s largest exchange, was beginning to shift in favor of the bears.
“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,” Material Indicators explained, warning traders to be cautious with their positions and avoid overtrading.
Concerns over a potential “Bart Simpson” pattern, a chart formation where the price drops sharply to previous levels, were also prevalent. Trader Jelle remarked that while such a scenario “wouldn’t surprise” him, he believed the market was looking stronger than it had during similar events in the past few months.
Despite the recent price stagnation, some market participants remained optimistic about Bitcoin’s potential. Trading firm QCP Capital, in its latest update to Telegram subscribers, noted that last week’s positive macroeconomic developments in the United States had not translated into sustained upward momentum for Bitcoin. This was surprising, especially given the widespread bullish sentiment in the market.
QCP Capital suggested that markets had already priced in the expectation that the Federal Reserve would announce the start of interest rate hikes next month. “Even with higher spot, BTC and ETH vols are currently more skewed for Puts than Calls till Oct,” the firm observed. This indicates that traders were more focused on hedging against potential downside risks rather than betting on further price increases. The firm concluded that Bitcoin is likely to trade within a range of $62,000 to $67,000 in the near term.
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