Bitcoin Hovers Above $64,000: Breakout Above August High Could Confirm Bullish Rebound, But Waning Spot Market Demand Hints at Short-Term ConsolidationBitcoin is currently hovering above $64,000, just a short distance from its August high of $65,200. Bitfinex analysts point out that a break above this level would signify the end of the long-term downtrend since the March high, confirming a broader uptrend from the October low below $30,000
Bitcoin Hovers Above $64,000: Breakout Above August High Could Confirm Bullish Rebound, But Waning Spot Market Demand Hints at Short-Term Consolidation
Bitcoin is currently hovering above $64,000, just a short distance from its August high of $65,200. Bitfinex analysts point out that a break above this level would signify the end of the long-term downtrend since the March high, confirming a broader uptrend from the October low below $30,000. However, despite positive factors like recent Fed rate cuts, Chinese stimulus packages, and improving risk appetite, waning spot market buying pressure suggests a potential short-term consolidation, as the bullish rebound remains unconfirmed.
Bitfinex analysts highlighted the significance of $65,200 in their Tuesday report: "Bitcoin is now within striking distance of the Aug. 25 high of $65,200. This level is important because Bitcoin has not yet broken above any prior highs since the all-time high of $73,666 on March 14, prior to forming a local/new bottom."
"This fits the technical definition of a downtrend," the analysts explained. Since the March 14 all-time high above $73,000, Bitcoin prices have been making lower highs and lower lows, forming a downtrend and ultimately bottoming out on September 6. Therefore, a break above the August high would confirm the end of this temporary downtrend, providing a strong signal for a longer-term bullish rebound.
However, Bitfinex analysts also caution investors to remain vigilant. According to data tracked by Coinalyze, the cumulative volume delta indicator has flattened since the weekend's price surge above $63,500. This is a sign of slowing spot market buying, indicating a potential price consolidation in the near term.
"It's entirely possible now that the price could form a new range around current levels and consolidate for a while, similar to what we have seen in previous rallies," the analysts said. "The rally was initially driven by spot buying but was subsequently followed by activity in perpetual contracts and futures markets. Another reason for caution is that spot market buying has slowed."
"We can see the cumulative volume delta indicator flattening once the price moved above $63,500," Bitfinex analysts told CoinDesk.
While a break above the August high would be a positive signal, the waning spot market buying pressure suggests the possibility of a short-term consolidation period. Investors should closely monitor market developments and adjust their investment strategies accordingly.
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