Bitcoin (BTC) experienced a period of consolidation on August 9, hovering around a crucial level of $29,700. The price of BTC showed renewed strength after a surge in the previous day’s Wall Street trading hours, reaching a high of $30,210, the highest price for Bitcoin in August so far. This sudden change in momentum had a significant impact on market participants’ expectations.
Popular trader Jelle commented on this development, stating that Bitcoin continues to maintain a bullish market structure. He highlighted the need to break the $32,000 level to further validate the bullish sentiment. Additionally, Jelle pointed out that on one-day timeframes, BTC/USD had completed a bullish cross on the moving average convergence/divergence indicator, adding another bullish signal to the list.
Michaël van de Poppe, the founder and CEO of trading firm Eight, emphasized the significance of the $29,700 level. He stated that the “Bitcoin party” would start once this level is broken, suggesting that until then, the market would remain in a consolidation phase. Van de Poppe later mentioned that Bitcoin was getting close to surpassing this crucial level.
However, not all traders shared the same level of enthusiasm. Rekt Capital, a popular trader and analyst, remained cautious about BTC’s price strength on weekly timeframes. While he acknowledged the positive move beyond the $29,250 level, he pointed out the historical resistance in the $29,900-$30,100 range. Rekt Capital suggested that if Bitcoin managed to dip and hold the $29,250 level as support, it would be a more bullish development.
The spike in BTC’s price was attributed to increased buying activity from various classes of Bitcoin whales. Observers noted that purple whales had converted a $20 million BTC bid ladder into market orders, sparking the rally. These whales continued to buy with amounts exceeding $50 million. Another brown mega whale also joined the party with a $2 million market buy order.
In derivatives markets, the push-pull between bulls and bears continued. Skew, a popular trader, highlighted that shorts were closing out positions on coin margin and USDT margin, contributing to the bounce in BTC’s price. He further noted that whales were utilizing liquidity to sell BTC, suggesting that late longs might be “chasing” the market. Skew emphasized that whales required substantial liquidity to exit or close positions, which often occurred during a squeeze event.
It is important to note that this article does not provide investment advice or recommendations. Investing and trading cryptocurrencies involve risks, and readers are advised to conduct their own research before making any decisions.
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