Bitcoin’s recent bullish momentum appears to be losing steam, as shifts in liquidity on the Binance exchange signal potential volatility ahead, according to a recent analysis by Keith Alan, co-founder of Material Indicators, a monitoring resource.
While Bitcoin’s price has remained relatively stable over the weekend, data from Binance’s BTC/USD order book reveals concerning changes in liquidity.
The bid support has shifted downward, concentrating around the $24,600 mark—a level not observed in spot markets since March.
What’s particularly worrisome is that the largest concentrations of BTC bid liquidity have moved below the previously established Lower Low at the bottom of the range.
BTC/USD experienced its lowest post-March dip in mid-June, reaching $24,750 before bouncing back, as confirmed by data from Cointelegraph Markets Pro and TradingView.
Keith Alan anticipates a similar bounce from the current spot levels before any downside pressure resumes.
However, he also expects a breakdown in price from a macro perspective, indicating that bullish momentum and sentiment are waning.
Although bears have not yet gained complete control, there is no clear dominance on either side of the market.
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This shift does not necessarily signify a surge in bearish momentum but rather hints at fading bullish sentiment. Keith Alan expressed skepticism about buy walls persisting without being filled.
Previously, Keith Alan had identified $24,750 as a crucial level for bulls to maintain to protect Bitcoin’s broader price uptrend.
Other traders in the cryptocurrency space also expect increased volatility in the near future.
Skew, a popular trader, pointed to activity in derivatives markets as a sign of impending turbulence.
Meanwhile, Credible Crypto, known for his optimistic BTC price outlook, hoped that any potential downside would be limited to the high $24,000 range.
He emphasized the importance of maintaining the higher timeframe low at $24.8k, suggesting that a reversal to fill the inefficiency above that level could follow.
In summary, Bitcoin’s bullish momentum appears to be fading as liquidity shifts on Binance signal potential volatility ahead.
While some traders anticipate a short-term bounce, the overall market sentiment remains uncertain, with both bullish and bearish forces at play.
The coming days will likely reveal whether Bitcoin can maintain its price uptrend or experience a more significant correction.
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