A fresh analysis warns that the bullish momentum of Bitcoin (BTC) is diminishing as liquidity shifts, potentially signaling a forthcoming volatile move.
Keith Alan, co-founder of the monitoring resource Material Indicators, raised concerns in a recent post on September 6th, highlighting noteworthy changes in the Binance order book.
Analyst: Bitcoin bulls and bears both lack “real strength”
BTC’s price has been trading within a tight range since the weekend, but data from exchanges suggests that this stability may soon be disrupted. Alan shared a snapshot of the BTC/USD order book on Binance, expressing concern about significant alterations in liquidity.
Bid support has shifted downwards, concentrating around the $24,600 mark for the day, a level unseen in spot markets since March. An accompanying commentary noted, “What is most concerning here is that the largest concentrations of BTC bid liquidity have now moved below the previously established Lower Low at the bottom of the range.”
Back in mid-June, BTC/USD experienced its lowest dip since March, dropping to $24,750 before staging a recovery, a fact confirmed by data from Cointelegraph Markets Pro and TradingView.
BTC/USD 1-week chart. Source: TradingView
Alan suggested the possibility of a similar bounce from the current spot levels before any downward movement reasserts itself. He wrote, “From a macro perspective, I do expect to see a price breakdown eventually, so the thought of printing a new LL isn’t surprising, but I did expect to see a stronger short term rally from this range before that happens.”
Nevertheless, bears have not yet gained complete control. Alan observed, “At this stage, I’m not seeing either side establish any real strength, in fact, IMO, this move doesn’t indicate strength in bearish momentum as much as it indicates that bullish momentum and sentiment seem to be fading.”
BTC/USD order book data for Binance. Source: Keith Alan/X
“Another big move brewing” for Bitcoin
Skew, a popular trader, pointed to activity in derivatives markets as a sign that volatility should return soon. Credible Crypto, known for his relatively optimistic outlook on BTC price prospects, hoped that any downside would be limited to the high $24,000 range. He noted, “The local low on major liquid/spot exchanges is at 25.2k.”
BTC/USD annotated chart. Source: CredibleCrypto/X
It’s important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risks, and readers should conduct their own research before making any decisions.