Bitcoin Whales Sold August Rally, Will BTC Price Trend Lower?

Bitcoin is trending sideways into the long U.S. weekend with the price of BTC compressing around $19,500 and $20,500. The support around the lower zone of this range might be tested as the number one cryptocurrency struggles to preserve its current levels. Related Reading: AVAX Posts Over 2 Million Transactions Over The Weekend, New Highs Seen At the time of writing, Bitcoin (BTC) trades at $19,900 with a 1.4% profit over the past 7 days and sideways price action in the last 24 hours. BTC’s price is heavily underperforming other cryptocurrencies as Ethereum (11%), Cardano (14%), and Polkadot (10%), recorded significant profits over the same period. Data from Material Indicators hints at a potential local top for Bitcoin on low timeframes as ask (sell) liquidity gets thicker around its immediate levels. Selling orders have swelled over the past week as Bitcoin trades sideways and might operate as resistance preventing BTC to reclaim the area north of $20,000. As seen in the chart below, as ask liquidity increases, bid (buy) orders fade around $19,500 contributing to the weakening of this key level, on low timeframes. The next immediate support is $19,000 which currently holds around $15 million in buy orders. The spike in ask liquidity correlates with an increase in selling pressure from small investors to Bitcoin whales. As the price of Bitcoin trended to the upside in August, larger players took advantage of the relief and “d...