At the Aug. 7 Wall Street open, Bitcoin (BTC) hovered around $56,000, raising concerns over a lack of support.
Data from Cointelegraph Markets Pro and TradingView showed BTC’s price rebound stalling, with BTC/USD remaining flat compared to the daily open. Despite being up by around $7,000 from the six-month lows on Aug. 5, market observers remained worried amid uncertainty.
Analyzing exchange order book conditions, trading resource Material Indicators suggested that Bitcoin’s price direction 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 noted in a 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 “gap” in CME Group’s Bitcoin futures market, potentially acting as a price magnet, was identified between $57,845 and $58,845.
Material Indicators co-founder Keith Alan warned about two potential death crosses involving various moving averages but mentioned that the downside they suggest could 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, referencing 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.”
The macroeconomic situation also remained volatile, with traders adopting a “wait and see” approach. In its latest bulletin to Telegram subscribers, trading firm QCP Capital advised monitoring macro correlations closely. “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. “We recommend keeping a close eye on Nasdaq, Nikkei, and USDJPY as cross-asset correlations remain high in the near term.”
QCP reiterated its earlier view on long-term profitability, suggesting that crypto should now be suitable for longs.
