Bitcoin’s price has shown signs of increased volatility, touching a four-day high near $29,600 as the new trading week on Wall Street begins. This movement follows a weekly close that provided cautious optimism for Bitcoin’s performance.
As the August 14 Wall Street trading session commenced, Bitcoin experienced a rise to multiday highs, reaching levels above $29,500. This marks the highest price point for Bitcoin since August 10, suggesting a potential shift from the relatively flat trading conditions over the weekend.
During the weekend, Bitcoin’s price displayed little movement, briefly dipping to the $29,000 support level. However, more intriguing behavior is now emerging in the market.
Analyzing the current state of exchange order books, trader Daan Crypto Trades observed the presence of a possible “spoof” sell wall, which could be artificially suppressing the spot price. Such large orders are sometimes used to manipulate perceptions and may not intend to execute the trade, indicating underlying activity in this price region.
Trader and analyst Rekt Capital noted that Bitcoin could soon challenge a series of lower highs on the weekly timeframe, hinting at a potential breakout attempt.
In the broader financial context, the week began with a modest uptick in United States equities. Simultaneously, the strength of the U.S. dollar showed signs of weakening at a resistance level last observed in July.
The U.S. Dollar Index (DXY) briefly reached levels above 103.5 before retracing. This comes after a notable rebound in the past month from lows below 100, which traditionally exerts downward pressure on the performance of the cryptocurrency market.
Caleb Franzen, senior market analyst at Cubic Analytics, assessed the situation, anticipating an imminent “breakout or rejection.” He highlighted that stock market bulls would prefer a rejection at these levels, while stock market bears would welcome a breakout.
The renewed volatility in Bitcoin’s price, combined with the interplay between traditional financial indicators, is shaping the current market sentiment and setting the stage for potential price movements in the coming days.