According to recent data, Bitcoin (BTC) is experiencing notable fluctuations in order book behavior as participants try to avert a fresh price drop.

Recent insights from CoinGlass indicate that a new support zone is forming around the $63,000 mark.

Support Liquidity and Trader Sentiment

Bitcoin recently established local lows at $63,400, reflecting a decline of about 5% from the previous day’s highs, based on information from TradingView.

Despite a small recovery above $64,000, many traders believe that a re-test of the recent lows is likely.

Data from CoinGlass highlights nearly $100 million in support liquidity at the $63,300 level across various exchange order books.

Popular trader Daan Crypto Trades has analyzed this situation and speculated that the latest surge in liquidity below the current price may be a strategic move to push the market upwards.

He remarked, “The order books on Binance futures are quite active. We saw numerous orders valued at approximately $300 million executed at these levels, with an additional $300 million in pending orders designed to elevate prices.”

“This is fascinating market behavior.”

There are expectations within the trading community for a potential sweep of range lows on BTC/USD, which could provide the necessary liquidity to support a bounce back.

Trader Mark Cullen has communicated a level of optimism despite the recent downturn. He indicates a specific interest in observing whether Bitcoin can establish a bottoming formation near the 38.2 Fibonacci level.

“If we lose that level and cannot reclaim it swiftly, a drop to the low 61k range may be possible.”

Market Analysis: The Impact of Rejections at $70,000

Bitcoin’s performance continues to reflect a phase of consolidation. Recently closing at approximately $64,600, the cryptocurrency recorded a total gain of 2.95% for the month of July, according to CoinGlass.

However, the ongoing trend of lower highs has raised concerns among traders, with sellers still exhibiting control near the previous all-time highs around $69,000.

Market analyst Rekt Capital noted that the rejection seen in the low $70,000s was a negative indicator, while highlighting the pattern of lower highs that has emerged.

In another recent post, he elaborated that historical trends might favor an eventual upward breakout for BTC/USD; however, he characterized the rejection at $70,000 as the “worst” case scenario during this consolidation.

The information presented does not serve as financial advice. Each investment carry risks, and readers are encouraged to conduct their own research to make informed decisions.