Things have been tough for Bitcoin over the previous few days. It was able to hold $9.3k price level for some days before it moved below $9k on June 27. The movement was such that it attained a local low of $8,840 on several leading spot and margin exchanges, catching numerous traders unawares.
Due to the move, a minimum of long positions valued at $20 million were liquidated on BitMEX platform only, in addition to liquidation of long positions valued at about $50 million over the previous few days. It appears that the bulls are stepping in, thereby helping to boost the price of BTC as it approaches a critical price zone.
A cryptocurrency day trader shared a picture on Twitter showing Bitfinex’s order book data which noted the emergence of a big buyer (s). The picture shows that a bull or small group of bulls have placed BTC buy orders between $8.6k and $8.8k.
Market participants have been able to predict the direction of Bitcoin in the past using Bitfinex’s order book. Another trader shared a chart showing a further macro outlook of Bitcoin’s price relative to the Bitfinex order book.
The chart shows that robust bullish support came before several of the rallies incurred by Bitcoin in recent months, based on Bitfinex’s order books. Likewise, robust bearish support marked every top close to $10k price level. Hence, based on history, Bitcoin could try to incur a relief rally.
In spite of the order book data, some market observers think that Bitcoin’s rally may not be sustainable. According to on-chain analyst Cole Garner, the immediate big move for Bitcoin is likely to be towards the south, backing his sentiment with three factors.
These include the swelling bearish pressure from miners, a bearish order book delta on Bitfinex, and institutions having a net short position through the CME’s Bitcoin futures. Hence, he said these would take BTC to the range between $7.8k and $8.2k. Similarly, Josh Rager noted in the previous week that BTC’s loss of the support of the area close to $9k could lead to $8.5k.