Bitcoin's Bullish Momentum Fades

The digital world's gold, Bitcoin, is now facing what many analysts are terming as a 'fading bullish momentum.'

by Faruk Imamovic
Bitcoin's Bullish Momentum Fades
© Getty Images News/Staff

The digital world's gold, Bitcoin, is now facing what many analysts are terming as a 'fading bullish momentum.' Recent shifts in liquidity patterns suggest that the cryptocurrency might be on the brink of another volatile move.

Keith Alan, the co-founder of the trusted monitoring resource Material Indicators, shared this perspective in a post dated September 6th, drawing attention to significant shifts observed on the Binance order book. Bitcoin's price, which has been quite stable since the last weekend, appears to be simmering right beneath the surface.

Alan points out that the bid support moved significantly, settling around $24,600. This price level is noteworthy because the spot markets haven't witnessed such a rate since March. The stability we've seen in BTC's price over the past days could be deceptively calm before a potential storm.

Probing Deeper: Predictions and Concerns

One can't help but be concerned about the shifting sands of Bitcoin's bid liquidity. "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,” highlighted a segment of the commentary accompanying the data.

Alan's perspective offers a slightly comforting angle, however. While he expects a similar upward bounce from the current levels, he doesn't discount the potential of a downside re-emerging. "From a macro perspective, I do expect to see price breakdown eventually," Alan pens thoughtfully, "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." Interestingly, the bears in the market haven't had a clear victory lap yet.

Alan shares, “At this stage, I’m not seeing either side establish any real strength." This move, he believes, doesn't resonate with a strengthened bearish momentum. Rather, it signifies the ebbing away of bullish enthusiasm and sentiment.

In a final word of caution, Alan states, “Whatever the case, I do not trust those buy walls to just sit there and get filled”. It's an alert for those keenly observing market dynamics, suggesting that while Bitcoin may be at a lull, the winds of change are never too far off.