Will $100M BTC price support help Bitcoin avoid a drop to $61K?
2024.08.01 05:39
Bitcoin (BTC) is seeing “wild” order book behavior as bulls attempt to stave off a fresh BTC price drop.
The latest data from monitoring resource CoinGlass shows a fresh support battleground forming near $63,000.
Bitcoin traders line up last line of defense
Bitcoin set new local lows of $63,400 on Aug. 1, 5% beneath the prior day’s highs, per Cointelegraph Markets Pro and TradingView.
While since recovering above the $64,000 mark, price is still due a rematch with those lows, traders believe.
According to CoinGlass, support liquidity at $63,300 alone now totals nearly $100 million across exchange order books.
BTC liquidation heatmap (screenshot). Source: CoinGlass
Analyzing the situation, popular trader Daan Crypto Trades suggested that the latest liquidity below the spot price could form part of a deliberate attempt to drive the market higher.
“That’s some wild action in the orderbooks on Binance futures,” he commented on X alongside a chart.
“We saw a lot of orders valued at ~$300M get filled down at these levels. There’s an additional ~$300M in orders put below price now, supposedly to try and drive it up. Interesting action.”
Binance Bitcoin futures order book data. Source: Daan Crypto Trades/X
Previously, Cointelegraph reported on expectations for a sweep of range lows on BTC/USD to take liquidity and fuel a return higher.
Updating X followers, fellow trader Mark Cullen appeared confident despite the latest downside.
“All going to plan, just waiting for Bitcoin to sweep the lows or put in a bottoming structure here around the 38.2 Fib level,” he wrote.
“Lose the level and fail to reclaim it quickly and we could see low 61ks once again.”
BTC/USDT chart. Source: Mark Cullen/X
Analyst: $70,000 rejection was “worst” BTC price option
Bitcoin’s monthly close meanwhile continued a multi-month consolidation process.
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Coming in at around $64,600, the close sealed total BTC price gains of 2.95% for July, CoinGlass confirms.
BTC/USD monthly returns (screenshot). Source: CoinGlass
Despite this, a series of lower highs on the daily chart remains problematic for some market participants, with Bitcoin sellers still firmly in control at the old all-time highs of $69,000 and above.
“Bitcoin upside wicked into the low $70,000s (blue circle) and rejected from the top of the structure,” popular trader and analyst Rekt Capital responded, highlighting the series of lower highs.
BTC/USD chart. Source: Rekt Capital/X
In a further X post, he suggested that history favored an upside breakout to eventually result for BTC/USD, with the $70,000 rejection the “worst” outcome within the consolidatory phase.
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.
