Bitcoin remained stagnant during the Wall Street opening on August 26, sparking warnings from analysts about a potential short-term price correction.
"No Straight Lines" for Bitcoin Rebound
Data from TradingView indicated early signs of weakness, as BTC/USD remained below $64,000. A dip to $63,128 on Bitstamp, marking the lowest point since the weekend, prompted caution from market observers.
“TLDR: There are NO straight lines,” trading resource Material Indicators noted on X, emphasizing the lack of a clear upward trajectory. A chart from its proprietary trading tools highlighted shifting order book liquidity on Binance, suggesting a bearish trend.
“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,” they added.
“Be mindful of your positions and resist the urge to overtrade. Expecting volatility through the monthly close.”
Popular trader Crypto Chase echoed these concerns, noting that Bitcoin was “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 commented on the short-term market movements.
Some analysts expressed concerns over a potential “Bart Simpson” pattern, where the price could drop sharply to levels seen late last week. Trader Jelle remarked that such a move “wouldn’t surprise” but added that the market looked “much stronger than it has on previous bart-esque occasions in the past few months.”
Bulls were still struggling to achieve a positive monthly close for August, attempting to recover from a significant drop to six-month lows just two weeks earlier.
Markets "Well Positioned" for Potential BTC Price Increase
Despite recent positive U.S. macroeconomic indicators, trading firm QCP Capital was surprised by the lack of a sustained price increase for Bitcoin. In its latest bulletin to Telegram channel subscribers, QCP noted that markets had already priced in the likelihood of the Federal Reserve beginning interest rate hikes next month.
“Even with higher spot, BTC and ETH vols are currently more skewed for Puts than Calls till Oct,” the bulletin stated.
“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 concluded by predicting that BTC/USD would remain within a range of $62,000 to $67,000 in the near term.
