As trading began on August 26, Bitcoin remained stagnant, prompting analysts to caution about a potential price correction in the short term.

No Direct Path for Bitcoin Recovery

Data from Cointelegraph Markets Pro and TradingView indicated signs of weakness at lower timeframes as BTC/USD remained below the $64,000 mark.

A dip to $63,128 on Bitstamp represented the lowest price observed since the weekend, contributing to cautious commentary from notable market analysts.

“TLDR: There are NO straight lines,” mentioned the trading resource Material Indicators in a post on X, accompanied by a chart illustrating changing order book liquidity on Binance, indicating a bearish trend.

“FireCharts shows Bitcoin bid liquidity moving down to $62.5K. Movements like this often bring the price down and can attract late short sellers,” they added.

“Be mindful of your positions and resist the urge to overtrade. Expect volatility as the month draws to a close.”

Trader Crypto Chase pointed out that Bitcoin was “lacking the aggressive follow-through typically seen with a true breakout.”

“As more individuals gain entry (with the US waking up), confidence may wane. After dipping low before a significant move, local prices usually aren’t available for hours,” he mentioned in reference to short timeframes.

Additional concerns were raised regarding a potential “Bart Simpson” movement—where prices could dip again to levels seen late last week.

Trader Jelle expressed that such an outcome “wouldn’t surprise” him but acknowledged that the market appeared “much stronger than similar situations in the past few months.”

For the bulls, there remains a critical challenge to transform August into a profitable month given the major downturn they faced two weeks prior.

Market Conditions Favor BTC Price Uptrend

Following last week’s favorable macro developments in the United States, trading firm QCP Capital expressed surprise at the lack of sustained upside for BTC prices.

The firm noted that markets had generally anticipated the Federal Reserve would initiate interest rate hikes next month.

“Despite the elevated spot rates, BTC and ETH volatility appears to be skewed more towards puts than calls leading up to October,” they stated.

“This is unexpected given the largely bullish sentiment, indicating that the market was prepared for such a movement and quickly capitalized on profits by selling calls.”

QCP speculated that BTC/USD would likely trade within a range of $62,000 to $67,000 in the near future.

This content does not offer investment advice or recommendations. Every trading and investment decision carries risk, and individuals should do their own research.