Bitcoin’s bullish momentum appears to be fading as shifts in liquidity on Binance indicate a potential volatile move, according to a recent analysis by Keith Alan, co-founder of monitoring resource Material Indicators. Despite Bitcoin’s price staying rangebound since the weekend, data from the BTC/USD order book on Binance raises concerns about changes in liquidity. Bid support has moved down to concentrate around $24,600, a price level not seen since March. The largest concentrations of BTC bid liquidity have also moved below the previously established lower low at the bottom of the range. This suggests a possible breakdown in price eventually, although Alan expects a short-term rally before the downside returns.
However, Alan notes that neither the bears nor the bulls have established real strength at the moment. The move doesn’t indicate strength in bearish momentum but rather suggests that bullish momentum and sentiment are fading. Alan cautions against relying on the buy walls to remain intact, emphasizing the need to remain cautious.
Another analyst, Skew, also predicts a return of volatility based on derivatives market activity. Skew highlights a choppy start to the week, over trading in derivatives markets, increasing perp liquidity, and thinning spot liquidity. These factors point to another significant move brewing for Bitcoin.
Fellow trader Credible Crypto expresses comparative optimism regarding Bitcoin’s price prospects, hoping that the downside will be limited to the high $24,000 range. He identifies the local low on major liquid/spot exchanges at $25.2k, but he would prefer this level to be breached while still holding the higher timeframe low at $24.8k before a reversal back up.
It is worth noting that these analyses are subjective and do not provide investment advice or recommendations. Investing in cryptocurrency carries risks, and readers are advised to conduct their own research and exercise caution when making investment decisions.
In conclusion, Bitcoin’s bullish momentum appears to be fading as liquidity shifts on Binance indicate a potential volatile move. While the bears and the bulls have not demonstrated real strength, analysts anticipate a breakdown in price eventually. Derivatives market activity suggests that volatility will soon return. Traders remain cautiously optimistic, hoping that any downside is limited to the high $24,000 range. However, it is essential for investors to conduct thorough research and exercise caution when making investment decisions.