At the Wall Street open on August 7, Bitcoin was trading at around $56,000, raising concerns about a lack of support in the markets. Data from Cointelegraph Markets Pro and TradingView showed that Bitcoin’s price rebound has paused and BTC/USD remains stable compared to the daily open.

Although Bitcoin is up nearly $7,000 from six-month lows seen on August 5, market observers are expressing concerns about the sustainability of this recovery. In this environment of uncertainty, speculations continue on the direction of Bitcoin’s price movements and its future potential.

Trading resource Material Indicators analyzed exchange order book conditions to determine which direction the price might move based on available buying and selling liquidity.

“The gap between BTC selling liquidity and CME Gap filling here is significant, but not insurmountable,” Material Indicators noted.

Taking into account CME Group’s reference to the “gap” in the Bitcoin futures market, he stated that the price could form a magnetic field between $57,845 and $58,845.

Additionally, Keith Alan, co-founder of Material Indicators, warned of two death crosses regarding various moving averages. However, he added that these projected downward movements could be moderated.

Keith Alan said, “Trend Precognition and MACD signal a momentum shift on the Bitcoin Daily chart. The bullish bias of these signals is slightly weakened by the death cross between the 21-Day and 100-Day MAs. “The 50-Day and 200-Day MAs appear to be on a similar path,” he stated.

The macroeconomic situation also remained uncertain throughout the day, with traders carefully remaining in a “wait and see” mode. In its latest newsletter to Telegram channel subscribers, QCP Capital recommended crypto traders monitor macro correlations.

“The initial shock may have passed, but we anticipate continued selling pressure in the coming days as systematic funds continue to reduce positions in light of rising volatility,” QCP Capital said.

Recommending to follow Nasdaq, Nikkei and USDJPY closely as points to be considered on stock market indices, QCP Capital stated that cross-asset correlations will remain high in the short term. He argued that in terms of long-term profitability, the cryptocurrency market is currently suitable for long positions.

QCP Capital said, “As the acute phase of market volatility is over, we prefer to establish long-term bull positions in anticipation of a cutting cycle. “We prefer trades with a 3-6 month time horizon to protect against breakouts due to higher volatility,” he concluded.

As a result, Bitcoin’s current liquidity issues and market uncertainties remain a major focus for investors and analysts. Technical indicators and macroeconomic situation observed in the market can have a decisive impact on Bitcoin’s price movements.