- Bitcoin price movements have shown low order book depth.
- Market indicators show an upward trend.
Recently, Bitcoin [BTC] Like other cryptocurrencies, it experienced a significant drop after the market crash on August 5th.
Bitcoin briefly recovered and rose to $60,000, but faced strong resistance and quickly fell back to $54,000.
On the hourly chart, BTC price movements of 0-1% and 1-5% have shown low order book depths. Historically, low order books indicate the bottom of an uptrend that is often followed by a bullish trend.
Source: Highblock Capital
This suggests that close monitoring of the order book for a potential reversal in Q4 2024 will be key in predicting future price movements.
BTC Fibonacci Levels
Looking at Bitcoin price action, BTC failed to respect the 0.618 Fibonaci level but bounced back from the 0.786 level, which is the most reliable Fibonaci retracement this year.
This level currently represents the last chance to record a higher low and, combined with the low order book depth, could suggest a potential bounce.
If Bitcoin follows past patterns, a rebound could occur as it fills the large gap created by the Japanese stock market crash, sending prices higher.
Source: TradingView
However, if the pattern fails, BTC may fall further before rebounding.
Bitcoin Mayers Band
The Mayer's band offers further insight into this Bitcoin bull cycle. The band suggests that the cycle is not over yet and that while $95,000 is a potential target, it does not signal the end of the cycle.
The long-term target is $140,000. For long-term traders, it may be wise to stay away from the short-term charts until Bitcoin makes a new all-time high.
The duration and magnitude of this Bitcoin cycle appears to be greater than previous cycles, which could signal further growth to come.
Source: TradingView
Adjusting Bitcoin dormant flows
Another key indicator is Bitcoin's corrective dormant flow, which is currently at around $10. Historically, BTC price has always bounced back from this level.
Combined with low order book depth, this lends further credence to the idea that Bitcoin price may recover soon.
It is also possible that BTC could see a strong rally and reach new all-time highs after briefly dropping to as low as $50,000.
Source: Glassnode
Bitcoin Whale Activity Increases
Finally, whale activity has increased, with BTC whales increasing their long positions with low leverage (typically 1.2x to 3x).
Read Bitcoin [BTC] Price Forecast 2024-25
Unlike retail traders, whales avoid emotional decision-making and use algorithms to build low-leverage long positions with dollar-cost averaging (DCA) when prices fall.
This calculated approach by Bitcoin whales could help drive the price of BTC to new highs as they accumulate Bitcoin during the downturn, setting the stage for a potential massive price surge.
Source: TradingView
