As Wall Street opened its doors on August 26, Bitcoin’s (BTC) price momentum began to wane. Despite the positive macro news from the previous week, BTC failed to capitalize on the bullish sentiment, leading to concerns of a potential short-term correction.
Market analysts observed signs of weakness in Bitcoin on lower timeframes, as the BTC/USD pair remained below the $64,000 level. The price briefly dipped to $63,128, the lowest point since before the weekend, prompting cautious commentary from popular traders.
Liquidity Concerns and Potential Correction
Trading resource Material Indicators highlighted a decline in Bitcoin’s bid liquidity on Binance, suggesting that market forces were favoring bearish sentiment. This shift in liquidity could potentially draw the price downward and attract late short sellers.
Popular trader Crypto Chase expressed concern over Bitcoin’s lack of aggressive follow-through after a potential breakout. He warned that the influx of new traders, particularly with the US market waking up, could make the current price less reliable.
Additionally, there were growing concerns about a possible “Bart Simpson” maneuver, where the price would gap lower to its previous position from the end of last week. This scenario was considered plausible by several prominent traders, including Jelle.
Despite the Short-Term Concerns, Bullish Sentiment Persists
While the market faced short-term challenges, bullish sentiment remained strong. Many analysts believed that the market was in a much stronger position compared to previous “Bart Simpson” occurrences.
Trading firm QCP Capital expressed surprise at the lack of sustained BTC price upside following last week’s positive macro developments. They suggested that the market had already priced in the Federal Reserve’s announcement of interest rate hikes.
Despite the current volatility, QCP Capital predicted that BTC/USD would remain within a range of $62,000 to $67,000 in the near term.
Also Read: Samson Mow Predicts Bitcoin Will Skyrocket Beyond $1 Million – Current $100K Price Still A ‘Sale’
Bitcoin’s price momentum faced a setback as Wall Street returned, raising concerns of a potential short-term correction. While the market remains bullish in the long term, traders should exercise caution and be mindful of the potential for volatility in the near future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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