Although there is great momentum in traditional financial markets, however, the price of Bitcoin rose 5.5% on August 6. But it failed to rise above $57,000. On August 7, the oil price and the Euronext 100 index increased by 2.8% and 2.2%, respectively. Derivative measures show a lack of enthusiasm, which shows that market-specific causes rather than conditions in the global economy are more likely to be responsible for Bitcoin’s price fall.
Bitcoin Price Fluctuation
Data from various sources revealed that the price of Bitcoin was flat against the daily open. Even while Bitcoin was up almost $7,000 from the 6-month lows on August 5, there was still a lot of uncertainty in the market, which made the analysts worried.
Several indicators concluded that the price might move based on present liquidity after analyzing order book conditions on exchanges.
“The amount of BTC ask liquidity between here and the CME Gap fill is significant, but not insurmountable,” it wrote in its latest post on X.
Keith Alan, co-founder of Material Indicators, continued by cautioning about two death crosses involving different moving averages.
“Trend Precognition and the MACD are both signalling 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, referring to his platform’s proprietary trading indicators.
On the day, the macroeconomic environment also remained unstable, with traders clearly in a “wait and see” mentality.
Trading company QCP Capital advised cryptocurrency traders to keep an eye out for macro linkages in its most recent advisory sent to Telegram channel users.
“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 about stock indexes.
QCP stated that cryptocurrency should now be appropriate for longs, restating a previous viewpoint on long-term profitability.
“With the acute phase of market volatility over, we favour establishing longer-term bullish positions in anticipation of a cutting cycle. We prefer trades with a 3-6mth time horizon to prevent getting chopped given higher volatilities,” it concluded.
