Bitcoin recently experienced a significant price correction, ending July with its first notable red weekly candle in weeks. This dip has sparked debate on whether the cryptocurrency has truly found a new bottom or if further consolidation is required. While historical data suggests such drawdowns often precede re-accumulation phases, a closer look at current market dynamics reveals a cautious sentiment.
Tracing Historical Patterns for a New Base
Historically, Bitcoin's weekly price declines have frequently served as crucial re-accumulation phases, paving the way for subsequent rallies. Since the second quarter, BTC has consistently established higher lows, forming structural bases around $77K and subsequently $105K-$109K, each followed by considerable upward movements. Following its latest all-time high and a fresh weekly dip, Bitcoin appears to be attempting to build its third such base within the $110K-$119K range. This potential consolidation zone is further bolstered by a significant short-side liquidity cluster forming around $114.5K, which, if swept, could reinforce underlying price stability.
The Critical Absence of Strong Buyer Commitment
Despite the apparent structural setup, a key distinguishing factor in the current market environment is the pronounced lack of robust buy-side interest. Analysis of Bitcoin’s 10% Bid-Ask Ratio on Binance Spot clearly indicates a lean towards the ask side, signifying that sellers currently maintain control, with overall buyer interest remaining weak. More critically, the volume profile during this potential base-building phase starkly differs from previous instances. Unlike past re-accumulation periods that saw substantial green volume bars, the current weekly chart shows red volume stacking up while green bars remain subdued. This muted volume is a clear indicator that strong bullish participation has yet to materialize. Without a significant shift towards bid-side dominance and increased on-chain accumulation, any upward price movement remains vulnerable to quickly fading.
