Originally published on: August 01, 2024
Bitcoin is currently experiencing intense order book activity as bullish investors work to prevent a potential drop in BTC’s price. Recent data from monitoring platform CoinGlass indicates that a significant support level is forming near $63,000, signaling a crucial battleground for Bitcoin.
On August 1st, Bitcoin hit local lows of $63,400, marking a 5% decrease from the previous day’s highs. While the price has since rebounded above $64,000, traders anticipate a retest of these lows in the near future. CoinGlass reports that there is nearly $100 million worth of support liquidity sitting at $63,300 across various exchange order books.
Some traders speculate that the recent activity in the order books may be a deliberate strategy to drive prices higher. Popular trader Daan Crypto Trades noted the unusual order book behavior on Binance futures, hinting at a potential market manipulation.
Despite the downward pressure, traders like Mark Cullen remain optimistic about Bitcoin’s prospects. Cullen is confident that Bitcoin will either sweep the lows or form a strong support structure around the 38.2 Fib level.
While Bitcoin closed July at around $64,600 with a 2.95% monthly gain, concerns about lower highs on the daily chart persist. Sellers continue to dominate above the old all-time highs of $69,000.
Renowned analyst Rekt Capital believes that history favors an eventual upside breakout for BTC/USD, even though the rejection at $70,000 may temporarily hinder this progress.
It’s important to note that this article does not serve as investment advice. As with any investment decision, it’s vital for readers to conduct their own research and analysis. Stay informed about market developments like this by subscribing to the Markets Outlook newsletter for valuable insights and trading strategies delivered every Monday. Subscribe now to refine your investment approach and seize new opportunities.