Bitcoin is trading nearly $11,000 below its August 14 record, according to RialCenter data, but FalconX’s head of research maintains that the market’s internal structure appears “extremely bullish.”
In a post on X on Wednesday, analyst David Lawant pointed out the behavior in bitcoin’s order book — the real-time record of buy and sell offers on exchanges — when prices pull back slightly from their highs.
He noted that following these minor dips, sell orders quickly vanish and buy orders take precedence, a dynamic he described as the order book “flipping” from the sell side to the bid side.
In simple terms, Lawant suggests that sellers do not remain in the market to push prices down after modest declines. Instead, strong demand steps in almost immediately, allowing buyers to outnumber sellers.
This pattern indicates that long-term players with substantial resources—such as institutions and well-capitalized funds—are viewing brief downturns as buying opportunities. Rather than suggesting weakness, the lack of sustained selling reflects confidence in bitcoin’s longer-term outlook.
The chart shared by Lawant supports this interpretation. It displays instances where bitcoin dipped slightly from record levels, only for buy orders to rapidly surge ahead of sell orders.
This repeated shift toward the bid side is characteristic of a bullish market structure, indicating that demand is poised to absorb any supply that reaches the market. For traders, the key takeaway is that bitcoin’s resilience following dips signifies strong underlying support.
While bitcoin remains below its August 14 peak of $124,481, the pattern noted by Lawant—quickly disappearing sellers and reasserting buyers—continues to bolster optimistic sentiment among analysts who view dips as opportunities rather than warnings.
Technical Analysis Highlights
- According to RialCenter’s technical analysis data model, from August 19, 17:00 UTC to August 20, 16:00 UTC, bitcoin traded within a $1,899.78 range, reaching a low of $112,437.99 and a high of $114,337.77.
- At around 13:00 UTC on August 20, the price fell to $112,652.09 amid liquidation pressure before recovering strongly.
- The recovery was bolstered by high trading activity: 14,643 BTC were traded, compared to a 24-hour average of 9,356 BTC.
- This surge established $112,400–$112,650 as a significant volume-backed support area.
- In the last hour of the analysis period (15:47–16:46 UTC), bitcoin climbed from $113,863.05 to $114,302.43 before closing at $113,983.06.
- The rally surpassed resistance levels at $113,500, $113,650, and $114,000, supported by elevated volumes of 250+ BTC per minute, indicating the start of a short-term uptrend.
Disclaimer: Some parts of this article were generated with the help of AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For further information, see RialCenter’s full AI Policy.
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