Analysts from Bitfinex, a cryptocurrency exchange, have stated that if Bitcoin (BTC) surpasses the previous high of $65,200 in August, the bearish lower high pattern will be invalidated. This coincides with the end of the summer market weakness and liquidity shortage, potentially driving the price of Bitcoin to new highs. However, the analysts also mentioned that the weakening buying pressure in the spot market suggests a possible consolidation in the short term.
Since falling below $54,000 earlier this month, Bitcoin has rebounded by 16%. However, Bitfinex analysts state that the confirmation of a bullish recovery has not yet been achieved. In their report released on Monday, they wrote:
“Source:
Coindesk
Bitfinex analysts point out that the local high of $65,200 on August 25 holds significant importance from a higher time frame perspective, until the local bottom on September 6. In other words, if Bitcoin successfully breaks through the August high, it will confirm the end of the medium-term downtrend and resume the broad upward trend since the low below $30,000 in October 2023.
In the short term, a consolidation phase may be expected. Bitfinex analysts also highlight data tracked by Coinalyze, which shows that the cumulative volume difference (CVD) in Bitcoin spot trading flattened when the price reached $63,500. This indicates a slowdown in buying pressure in the spot market. The global cumulative volume difference indicator measures the difference between buying and selling volumes across major centralized cryptocurrency exchanges over a certain period of time.
“Source:
Bitfinex
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