Renowned cryptocurrency analyst Skew has recently delved into the nuances of Bitcoin’s (BTC) market dynamics. The analyst highlights in a recent X post that Bitcoin is currently poised at a critical juncture, with its price actions showing potential for an upward divergence if certain conditions are met.
At the time of press, Bitcoin was hovering around $63,000, maintaining a delicate balance above the significant threshold of $62,000, which Skew identifies as crucial for the cryptocurrency to have any substantial chance of bouncing back to higher levels. He points out that for a positive shift, Bitcoin needs to reclaim its daily open and attract spot-taker bids, elements essential for confirming a bullish trend.
The analyst has identified that Bitcoin may face difficulties this week at its weekly open and the $66,000 mark. The primary risks that could negatively impact Bitcoin’s price include instability in the traditional financial markets and geopolitical tensions.
Meanwhile, the analyst provides insight into Bitcoin’s Contract for Difference (CVD) and Delta, noting the choppiness in low-time frame (LTF) price actions. Market takers are leading the price toward both passive supply and demand, indicating a complex interplay of market forces. Despite a robust absorption of sellers at the $62,000 level, there remains a consistent de-risking in the perpetual markets, which now reflect a clear sentiment of pessimism.
According to the order book on Binance Spot, the bid depth is 3.5% thick, while the ask depth is 12.3% thick. This indicates a significant preference for bid liquidity. However, Skew suggests that in order to shift from a risk-off to a risk-on environment, spot flows need to change, as well as occasional limit buying on LTF dips.
Further complicating the landscape is the activity on the Coinbase spot, where the order book is notably thin despite aggregate spot demand around the $60,000 mark. The spot CVDs and Delta reveal considerable limit selling into price bounces and time-weighted average price (TWAP) selling that has driven slow grinds lower.
As Bitcoin navigates these challenging market conditions, Skew believes that the upcoming European trading session could be a crucial time for bulls to assert their strength and potentially steer the market in a favorable direction. The insights provided paint a picture of a market at a crossroads, where strategic moves and external factors will likely dictate Bitcoin’s path ahead.
