Bitcoin (BTC) went nowhere at the Aug. 26 Wall Street open as analysis stepped up warnings of a short-term BTC price correction.
Related: 4 reasons why Bitcoin may see $60K before $70K
"No straight lines" for Bitcoin rebound
Data from Cointelegraph Markets Pro and TradingView revealed signs of weakness starting to show on low timeframes as BTC/USD stayed below $64,000.
A trip to $63,128 on Bitstamp, the lowest since before the weekend, set the scene for cautious words from popular market commentators.
“TLDR: There are NO straight lines,” trading resource Material Indicators wrote in a post on X.
An accompanying chart from one of its proprietary trading tools showed shifting order book liquidity on largest global exchange Binance favoring bears’ cause.
“FireCharts shows Bitcoin bid liquidity moving down to $62.5k. Moves like this tend to draw price downward. It also tends to lure in late shorts,” it continued.
“Be mindful of your positions and resist the urge to overtrade. Expecting volatility through the monthly close.”
Popular trader Crypto Chase meanwhile warned that Bitcoin “lacking the aggressive follow through you'd typically see from a true breakout.”
“The more people given an opportunity to get aboard (US waking up), the less one should trust it IMO. After sweeping a low prior to a true pump, local prices typically aren't offered for hours,” he wrote about short timeframes.
Others added to existing concerns over a possible “Bart Simpson” maneuver occuring, where price would gap lower to its position from late last week.
Among them was popular trader Jelle, who described such an outcome as one which “wouldn’t surprise.”
He nonetheless argued that the market was “looking much stronger than it has on previous bart-esque occasions in the past few months.”
Bulls in turn faced an ongoing battle to make August a “green” monthly candle, having erased the majority of the crash to six-month lows two weeks prior.
Markets were "well positioned" for BTC price upside
Following last week’s positive United States macro developments, trading firm QCP Capital was equally surprised by the absence of sustained BTC price upside.
Related: BTC price dip gone by September? 5 things to know in Bitcoin this week
Markets, it suggested in its latest bulletin to Telegram channel subscribers, had already assumed that the Federal Reserve would announce the start of interest rate hikes next month.
“Even with higher spot, BTC and ETH vols are currently more skewed for Puts than Calls till Oct,” it revealed.
“This is surprising given the overwhelmingly bullish sentiment. It possibly indicates that the market was well positioned for this move and was very quick to take profit by selling calls.”
QCP added that it expected BTC/USD to maintain a range between $62,000 and $67,000 “in the near term.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
