Important takeouts:
Bitcoin dip buyers are back, but are still overwhelmed by futures and spot market sellers.
The threat of sales by Labor Day Holidays closed markets and OG Bitcoin Zilla can send BTC prices below $105,000.
Bitcoin (BTC) is trading in rocky waters as it struggles to exceed $108,000 in prices and at this time there are no signs of recovery. Traders are taking caution as Wall Street was closed on Monday due to Labor Day holidays and Bitcoin Zilla’s overhang could drop another $1 billion tranche BTC in the open market.
Notable transfers and sales from long-term sub-horse Bitcoin wallets, as well as conversion of revenue to ether (ETH), reduced inflows into spot BTC ETFs, and weaknesses over the weekend of the Dow, S&P500 and Nasdaq all place importance on investors’ sentiment. Besides the pressure there is the pre- and post-tier rhetoric of the US president’s tariffs and the market response to the president’s attempts to take control of the Federal Reserve.
The longer positive is the expectations of market participants that the Fed will begin interest rate cuts in late September or October, but these hopes have not been enough to improve short-term investors’ sentiment.
From a technical standpoint, Bitcoin’s intraday price action continues to be driven primarily by activities in the permanent futures market, indicating the cumulative volume delta is selling in Binance cohorts of 1,000 to 10 million, far exceeding purchases in the spot and futures market at Binans and Coinbase.
Sales at Futures continue to curb the breakout of Bitcoin prices, and data shows that short positions are increasing on each failed attempt of a support resistance flip, while spot buyers in retail size cohorts (100-10K) are buying new lows.
Related: Will Bitcoin prices fall in September?
As shown in the chart below, the bid and asking ratio (set to 10% spot order depth) indicates that they are biting bites as prices fell from $112,000 to $111,000 zone from August 19 to August 22, with BTC falling from $107,200 from Friday to Sunday. It is worth noting that prior to August 19th, the metric has not flagged instances of the order that have more bids than the sales order since June 22nd, when the BTC price fell below $98,000.
Bitcoin’s 30-day liquidation heat map shows that the most notable cluster is $104,000, and downside liquidity continues to be absorbed.
In the short time frame, trdr.io’s BTC/USDT 1 hour chart shows bids of $105,000, $102,600 and $100,000. If you set your order book to 10% depth, there are also bids in the $99,000 to $92,000 zones.
Buyers have proven eager to buy dips to new lowest speeds, but sellers continue to overwhelm DIP buyers with the weakness of BTC prices combined with the liquidity of order books. Wall Street (and Spot BTC ETF) closed on Monday, and the negative overhangs of OG whales sold in open markets could continue to measure prices in the short term.
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
