Bitcoin (BTC) circled $56,000 at the Aug. 7 Wall Street open as concerns emerged over a lack of support.
Bitcoin battles death crosses, thin liquidity
Data from Cointelegraph Markets Pro and TradingView showed the BTC price rebound stalling, with BTC/USD flat versus the daily open.
Still up by around $7,000 versus the six-month lows seen on Aug. 5, Bitcoin nonetheless continued to worry market observers amid an atmosphere of uncertainty.
Analyzing order book conditions on exchanges, trading resource Material Indicators concluded that the price could go either way based on current buy and sell liquidity.
“The amount of BTC ask liquidity between here and the CME Gap fill is significant, but not insurmountable,” it wrote in its latest post on X.
“The concern is that there aren’t any large buy walls in the active trading range to create a foundation for a stronger move up. Let’s see if that changes after TradFi opens and the CME Gap is open for business.”
The post referred to the “gap” in CME Group’s Bitcoin futures market, potentially creating a magnet for price between $57,845 and $58,845.
Continuing, Material Indicators co-founder Keith Alan warned about two death crosses involving various moving averages — but added that the downside they portend could yet be mitigated.
“Trend Precognition and the MACD are both signaling a momentum shift on the Bitcoin Daily chart. The bullishness of those signals is somewhat dampened by the death cross between the 21-Day and 100-Day MAs. It appears that the 50-Day and the 200-Day are also on a similar path,” he explained on X, referring to his platform’s proprietary trading indicators.
“It’s worth noting that Death Crosses are lagging indicators. A fast recovery could unwind them, and if BTC bulls can manage to fill the CME Gap today and continue upward that would be a sign of strength. Failure to fill the gap or a rejection from the top of the gap would be a concern for bulls.”
Bitcoin traders show cautious optimism
The macroeconomic situation likewise remained in flux on the day, with traders conspicuously in “wait and see” mode.
Related: Bitcoin needs $59.1K weekly close amid doubt over BTC price all-time high
In its latest bulletin to Telegram channel subscribers, trading firm QCP Capital told crypto traders to monitor macro correlations.
“While the initial shock may have passed, we foresee continued selling pressure in the coming days as systematic funds continue to pare exposure in light of the heightened volatility,” it warned about stock indexes.
“We recommend keeping a close eye on Nasdaq, Nikkei, and USDJPY as cross-asset correlations remain high in the near term.”
QCP reiterated an earlier perspective on long-term profitability, arguing that crypto should now be…
Read More: BTC price eyes $58K CME gap as analysis flags 2 Bitcoin death crosses
