Bitcoin is witnessing a chaotic order book scenario as bulls endeavor to prevent a fresh price decline.
According to the latest data from CoinGlass, a new support battleground is forming close to the $63,000 level. This liquidity is attempting to avert a deeper BTC price retracement amidst a landscape of lower highs.
Bitcoin Traders Form Last Line of Defense
On August 1, Bitcoin (BTC) reached new local lows of $63,400, marking a 5% drop from the previous day’s highs, as per Cointelegraph Markets Pro and TradingView. Although the price has recovered above the $64,000 threshold, traders anticipate another confrontation with these lows. CoinGlass data shows that support liquidity at $63,300 alone now amounts to nearly $100 million across exchange order books.
Analyzing this situation, renowned trader Daan Crypto Trades proposed that the recent liquidity beneath the spot price might be part of a calculated effort to push the market higher. He noted on X, “That’s some wild action in the order books on Binance futures. We saw a lot of orders valued at ~$300M get filled down at these levels. There’s an additional ~$300M in orders put below price now, supposedly to try and drive it up. Interesting action.”
Previously, Cointelegraph discussed expectations for a sweep of range lows on BTC/USD to capture liquidity and fuel a return higher. Fellow trader Mark Cullen also conveyed confidence despite the recent decline, stating, “All going to plan, just waiting for Bitcoin to sweep the lows or put in a bottoming structure here around the 38.2 Fib level. Lose the level and fail to reclaim it quickly and we could see low 61ks once again.”
Monthly Close and Market Sentiment
Bitcoin’s monthly close continued its ongoing multimonth consolidation process. Closing at approximately $64,600, the total BTC price gains for July were confirmed at 2.95%, according to CoinGlass. However, a series of lower highs on the daily chart remains a concern for some market participants, with Bitcoin sellers still exerting control at the previous all-time highs of $69,000 and above.
Popular trader and analyst Rekt Capital pointed out, “Bitcoin upside wicked into the low $70,000s (blue circle) and rejected from the top of the structure,” emphasizing the sequence of lower highs. He suggested that history might favor an eventual upside breakout for BTC/USD, with the $70,000 rejection being the “worst” outcome within the consolidation phase.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
