Bitcoin (BTC) experienced a surge in price after the Wall Street opening on August 14th, as the market saw a slight increase in volatility. This rise in price marked the highest levels Bitcoin had reached since August 10th.
Over the weekend, Bitcoin trading conditions were unusually flat, with a brief dip in price to the $29,000 support level. However, this stagnant price action appeared to give way to more interesting behavior as the week began.
Popular trader Daan Crypto Trades analyzed the current setup on exchange order books and noticed a potential “spoof” sell wall that was keeping the spot price suppressed. He explained that these large sell orders are often used to push the price down, but they may not actually get filled. Nevertheless, the presence of this sell wall indicates some action occurring in the market in this price region.
Despite the increase in volatility, Bitcoin remained below a key resistance zone that bulls needed to surpass in order to continue the upward momentum. The $29,700 level was still acting as a significant barrier for Bitcoin traders.
Another prominent trader and analyst, Rekt Capital, predicted that Bitcoin would soon challenge the multi-week series of Lower Highs in an attempt to break out. He referenced the weekly timeframes to support his prediction.
The most recent weekly close was of particular significance, even though there was a lack of volatility. The closing price was just above the key level of $29,250, which bulls required for a potential rebound. Rekt Capital suggested that a rebound could be near for BTC/USD, and the presence of a diamond-shaped bottom pattern further supported this possibility.
Meanwhile, in the broader financial markets, US equities started the week on a modestly positive note, while the strength of the US dollar began to weaken after reaching resistance levels last seen in July. The US dollar index (DXY) nearly matched its July peak above 103.5 before turning lower. This rebound in the US dollar index over the past month typically acts as a headwind for the performance of cryptocurrencies.
Caleb Franzen, a senior market analyst at Cubic Analytics, analyzed the situation and predicted a potential breakout or rejection for the US dollar index. Stock market bulls would prefer a rejection, while bears would welcome a breakout.
It is important to note that this article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making any decisions.
Overall, the Bitcoin market showed signs of increased activity after a relatively flat weekend, with traders closely watching key resistance levels and market dynamics.