Bitcoin (BTC) experienced a “scam wick” that led to new two-month lows, but it has since recovered. BTC/USD was monitored by Cointelegraph Markets Pro and TradingView as it bounced back from a flash dip to $25,800 on Bitstamp. The pair saw weakness after the start of the week’s final Wall Street trading session, briefly cutting through the key 100-day and 200-week moving averages (MAs) before rebounding.
Market participants were divided over the possible future course of events as the weekend approached. Analysis before the local lows had already identified $26,500 as an important level that must be reclaimed in order to consider long positions. The potential long flip level was higher at $27,300, according to Crypto Tony, despite the “nice bounce” overnight. Daan Crypto Trades also told his Twitter followers that the daily close was “nice” and that the line in the sand was $26.5K.
Binance Order Book Remains a Concern
Monitoring resource Material Indicators is pessimistic about the state of the Binance order book due to a lack of bid liquidity, with the largest groups of whales abstaining from the market. The analysis states that consolidating in this range would be healthy because it would give the market the chance to decide whether it wants to continue distribution or flip to accumulation. The 200-week MA remains a key line in the sand when it comes to the bullish thesis going forward. Material Indicators warns that if there is a lack of bid liquidity and buying from the purple and brown whale classes, it will lead to further downside. Any sustained breach back below the 200 WMA invalidates any bullish dream of a breakout.