The key takeaways
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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.
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BTC above $115,000 is a sign that the bulls want to push Bitcoin prices to new highs.
BitcoinBTCBinance, in particular, has been under pressure to sell after the price of, which reached a record high last week, was halted.
As per CryptoQuantBitcoin’s Net Taker Volumn again went negative and dropped below $60 million. This indicates that the majority of market participants are selling. Even though Bitcoin has been hovering at record levels, the negative readings show a general bearish trend among retail investors.
This caution is further supported by regional demand trends. 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 buyers are hesitant despite Bitcoin’s recent rally. They either take profits, or wait for better entry prices. The underlying fundamentals of the cryptocurrency market are still unclear. Korea Premium Index This is an indication that Bitcoin now trades at a lower price on Korean Exchanges. This divergence indicates ongoing pressure on retail traders in Korea and an overall lack of enthusiasm.
Related: Bitcoin seller exhaustion ‘likely’ as trader eyes $115K BTC price dip
Bitcoin is still fighting for liquidity, and the bulls are holding on.
Bitcoin’s holdings above $110,000 and $115,000 are encouraging. Boris Vest is a cryptocurrency analyst noted This ongoing liquidity war, in which sellers absorb near $116,000 while buyers cap at $120,000, shows that the market is healthy on both sides.
Binance has been under intense pressure from sellers, yet the negative CVD of $4.1 Billion was immediately absorbed, and then a positive $2.3 Billion spike occurred as more buyers entered. It is clear that the demand for Bitcoin remains strong even at low levels. Bulls will maintain control as long Bitcoin defends the $110,000 area. There is upside potential, if the sell-side liquidities thin out. This tight range will likely set the stage for an uptrend breakout if it continues to hold.
Technically, a break above $120,000 is still possible. However, the FVG (fair value gap) that exists between $115.200 and 112,000 may provide enough liquidity for the next upward 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. If the price fails to bounce back quickly from recent lows of $115,700 it could indicate fading momentum. Shortly, BTC’s ability to bounce back from this zone of liquidity will dictate whether it is poised for a continuation or deeper retracement.
Bitcoin Researcher Axel Adler Jr. claimed that BTC remains within the growth zone. “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
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Source: cointelegraph.com
