In a pivotal move, renowned crypto trader and analyst Skew has recently provided insights into the current state of Bitcoin (BTC) in a post highlighting key aspects of the cryptocurrency’s price movement. In a recent X post, Skew noted that BTC’s 4-hour price is still consolidating, with a notable resistance emerging around the high $52,000 range, aligning closely with the $53,000 spot supply.
The market has experienced a loss of momentum as it approaches the $52,300 mark alongside the weekly open. The analyst advises closely monitoring the 4-hour Exponential Moving Averages (EMAs) and momentum indicators like the Relative Strength Index (RSI) and Stochastic RSI for further insights.
A loss of systematic trend, particularly with the 4-hour 21/55 EMAs and RSI falling below 50, could potentially result in a price retest around the $48,000 to $47,000 range as demand levels shift. However, Skew emphasized that this outcome has not yet been confirmed as Bitcoin consolidates.
Source: Chart by Skew
Delving into the broader picture, Skew highlighted the Bitcoin daily timeframe, suggesting that realizing gains during price extremes above $60,000 and below $47,000 could present favorable opportunities for traders. The current range offers ample trading opportunities, with liquidity well-defined and significant market entities actively participating.
Skew’s analysis of Bitcoin’s performance across different exchanges has revealed interesting patterns. On Binance Spot, there is a well-defined range in liquidity, with significant market entities buying and selling around the $53,000 and $51,000 price levels, respectively. Skew identified potential front running of dips, with bids quoted around $51,000, indicating market anticipation.
On Coinbase Spot, the order book appears ask-heavy, indicating a substantial volume of sell orders above the current price. However, Skew noted that this is being balanced by BTC Spot ETF inflows, with market participants both front-running these flows and adjusting positions based on expected price movements.
Looking ahead, Skew emphasized the importance of monitoring how sellers are absorbed during price dips and the volume of buying required to drive the market higher. With $53,000 serving as a current market supply point actively being sold, higher buy volumes would be necessary to push prices upward.
Skew noted fewer significant flow changes on Bitfinex Spot, with substantial asks suggesting selling pressure. However, there’s also a noted shift in flow dynamics compared to past trends, possibly influenced by similar trading patterns observed on Binance Spot.
Skew’s analysis emphasized the continuous consolidation in Bitcoin’s price, where critical resistance and support levels govern short-term market movements. Additionally, it sheds light on potential trading opportunities that arise during price extremes.
