Bitcoin's performance remained stagnant at the Wall Street open on August 26, as warnings of a short-term price correction emerged. Data from Cointelegraph Markets Pro and TradingView highlighted a potential shift in market dynamics, indicating signs of weakness on lower timeframes as BTCUSD struggled to stay above $64,000.
No Straight Lines for Bitcoin's Rebound
The price dipped to $63,128 on Bitstamp, the lowest level since before the weekend, prompting cautious commentary from market analysts. A trading resource, Material Indicators, noted, "TLDR: There are NO straight lines" for Bitcoin’s rebound. Their analysis showed Bitcoin bid liquidity dropping to $62.5K, which could potentially lead to further downward price movements and attract late shorts.
Cointelegraph
Traders were advised to be mindful of their positions and to resist overtrading, as volatility was expected through the monthly close.
Caution Among Traders
Trader Crypto Chase expressed concerns about Bitcoin's lack of aggressive follow-through, typically seen after a breakout. He indicated that increased participation from U.S. traders might diminish the reliability of the current price movements. Others voiced worries about a potential “Bart Simpson” maneuver, where the price could drop back to previous levels.
Cointelegraph
Bulls were struggling to maintain a “green” monthly candle for August, having previously seen a significant drop to six-month lows.
Market Positioning for BTC Upside
Despite last week’s positive macroeconomic developments in the U.S., trading firm QCP Capital noted the surprising absence of sustained upward momentum in Bitcoin’s price. They pointed out that market participants were already anticipating interest rate hikes from the Federal Reserve next month.
QCP also revealed that current options volatility showed a skew towards puts rather than calls, which was unexpected given the bullish sentiment. They projected that BTCUSD would likely trade within a range of $62,000 to $67,000 in the near term.
Cointelegraph
Note: This article does not contain investment advice. Readers should conduct their own research before making investment decisions.
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