Bitcoin Liquidity Drops to $62.5K as BTC Price Faces Challenges at US

August 27, 2024 02:17 PM AEST | By Team Kalkine Media

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Bitcoin Liquidity Drops to $62.5K as BTC Price Faces Challenges at US — Image source: shutterstock

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Bitcoin’s price momentum has stalled as Wall Street resumed trading on August 26, revealing an unexpected lack of progress despite recent macroeconomic news. it indicates a short-term correction in BTC’s price.

Bitcoin’s performance showed signs of weakness as it remained below $64,000. A decline to $63,128 on Bitstamp, the lowest since before the weekend, prompted caution from market observers. The trading resource Material Indicators highlighted the absence of straightforward recovery for {Bitcoin} (BTC), noting that recent liquidity shifts on Binance are favoring bearish positions. Their proprietary tool, FireCharts, indicated a decrease in bid liquidity around $62,500, which could drive prices lower and attract additional short positions.

Trader Crypto Chase remarked on Bitcoin’s lack of the expected aggressive momentum following its recent movements. He noted that the opportunity for new participants to enter the market might decrease trust in the current price action, suggesting that prices usually stabilize for hours after such movements.

Concerns about a potential “Bart Simpson” pattern, where the price could drop to levels seen earlier in the week, were also raised. Trader Jelle mentioned that while such a move would not be surprising, the market appeared stronger compared to previous instances of similar patterns in recent months.

Despite the positive macroeconomic developments from the previous week, such as expectations of Federal Reserve actions, trading firm QCP Capital expressed surprise at Bitcoin's inability to sustain upward momentum. They noted that the market had largely anticipated the Federal Reserve's upcoming interest rate hikes. QCP Capital’s latest update indicated that Bitcoin might continue to fluctuate within the range of $62,000 to $67,000 in the near term.

Overall, the current market conditions reflect a cautious sentiment among traders, with Bitcoin facing challenges in maintaining upward momentum and navigating potential corrections.

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