Bitcoin (BTC) Suffers Another 4% Correction, Faces $50M Sell Pressure, Targets $54.5K

Bitcoin price has retraced below $59,000 on August 21, following another unsuccessful attempt to advance towards $65,000.

Bitcoin (CRYPTO: BTC) price encountered another round of selling pressure on August 21, following an attempt to advance towards $65,000.

As a result of another failed attempt to rally, BTC price encountered a 4% correction from the 24-hour high, trading below $59,000 on August 21.

Over the past week, Bitcoin’s price has remained largely stagnant within a narrow 5% range between $58,000 and $62,000, as observed in the TradingView chart. On August 20, BTC attempted to reclaim the $62,000 level, but the rally was quickly countered at around $61,395.

However, the US Federal Reserve’s proposed rate cut in September offers long-term positive sentiment for the market.

On the other hand, Bitcoin’s price has been impacted by significant selling activity from the US government and FTX creditors, who have moved large amounts of BTC into exchanges. This activity has contributed to the increased volatility and caused Bitcoin’s price to be stuck in a prolonged consolidation around the $60,000 area.

Bitcoin Faces $50 Million Sell Pressure from Exchanges A recent analysis of Bitcoin’s order books reveals that sell orders have been piling up, potentially hindering the coin’s price rally.

Without a fresh bullish catalyst, the existing bearish sentiment could nullify any upward momentum in the coming days.

The Exchange Market Depth data, as shown in the IntoTheBlock chart, reveals that total Bitcoin buy orders amount to approximately 47,000 BTC, while sell orders have surged to 53,000 BTC.

This represents a significant imbalance, with sell orders outweighing buy orders by about 6,000 BTC. At the average price of $59,516, this translates to a sell pressure of roughly $50 million.

This bearish headwind from the order books suggests that sellers, who regained control after the last rally, could obstruct Bitcoin’s advance above $62,000. The ongoing shortfall in demand, coupled with the excess supply, is likely to push Bitcoin into a price correction phase as the week progresses.

BTC Price Forecast: Major Roadblock Looming At $62,000 Technically, the major roadblock for Bitcoin lies at the $62,000 resistance level.

The chart reveals that BTC has been trading below the middle Keltner Channel band, which is acting as dynamic resistance. The price action is also struggling to maintain support around $59,302, as indicated by the RSI Divergence Indicator, which is showing a bearish divergence.

If Bitcoin fails to hold above $59,000, the next significant support level is around $54,565, which aligns with the lower Keltner Channel band. On the upside, breaching the $62,000 resistance would be crucial for any bullish continuation. However, given the current market conditions, the likelihood of a breakout appears slim, and Bitcoin could face further downward pressure before any significant recovery occurs.

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