The key takeaways
-
The sideways movement of Bitcoin is due to the fact that Binance’s taker volumes have turned negative and both US and Korean BTC Premium Indexes are showing weak demand.
-
BTC’s holdings above $115,000, and the strong buyer appetite near this level, show that bulls will push Bitcoin to new heights.
BitcoinBTCBinance in particular has seen a retail-driven selling pressure that is causing the price to stagnate.
The following is a list of CryptoQuantBitcoin’s net taker volume has again fallen below $60 Million. The metric shows that most market makers are sellers. Even though Bitcoin has been hovering at record highs, the negative readings show a general bearish sentiment.
The regional trends in demand support the caution. The Coinbase Premium Index in the US has been flat since July. This index measures the difference between Coinbase’s price and that of other global exchanges. US spot investors are still hesitant to buy Bitcoin despite its recent surge. Instead, they either sit out or take their profits in order to wait for better entry levels. The underlying fundamentals of the cryptocurrency market are still unclear. Korea Premium Index The price of Bitcoin on Korean exchanges has fallen into the negative zone, which is a sign it’s now being traded at a discounted rate. The divergence between the two indices indicates that retail Korean traders are under pressure to sell and have a general lack of excitement.
Related: Bitcoin seller exhaustion ‘likely’ as trader eyes $115K BTC price dip
Bitcoin still in a liquidity war, but bulls continue to hold the line
Bitcoin’s holdings above $110,000 and $115,000 are encouraging. Boris Vest, a crypto analyst noted The ongoing battle over liquidity, which has seen sellers absorb close to $116,000, and buyers have a cap of $120,000 shows the healthy nature of this market.
Binance was under aggressive pressure to sell, but the $4.1 billion negative cumulative volume delta CVD (CVD), which occurred recently, was quickly absorbed by buyers, who stepped up. This spiked $2.3 billion in positive value. It is clear that the demand for Bitcoin remains strong even at low levels. So long as Bitcoin maintains its mid-$110,000 level, the bulls are in structural control. The upside is possible if liquidity on the sell side thins. This range is likely to remain tighter for longer, allowing the current uptrend to gain momentum.
Technically, while an upward breakout is still possible above $120,000, the FVG (fair value gap) could be swept between $115.200 and $112,000 to provide liquidity for the next leg. This zone is likely to trigger liquidations, and will set up a rally that could surpass the all-time record high price of $123,100.
This scenario will only play out if Bitcoin shows a strong bullish response upon retesting of the FVG. Failure to quickly rebound after taking out recent equal lows around $115.700 could signal declining momentum and expose the downside risk. The strength and speed with which BTC bounces from the liquidity zone is what will determine whether BTC has the potential to continue or undergo a more significant retracement.
Bitcoin Researcher Axel Adler Jr. stated that BTC is still in the growth area. “market participants still support buying activity.” Adler Jr added,
“We haven’t yet entered a phase of excessive optimism there’s still room for further upside toward $139 K without a serious risk of overheating.”
Related: New Bitcoin analysis says ‘most explosive phase’ to $140K is close
This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
