Bitcoin nears $63.5K as traders warn of Monday weakness pattern
In brief
- Bitcoin reached $63,450 on Saturday, consolidating near two-week highs amid thin holiday order books
- $167 million in short liquidations triggered as bulls pushed higher over the weekend
- Traders flagged a concerning pattern: the past seven Mondays showed major price weakness for BTC
Price action and liquidations
Bitcoin reached its highest levels in nearly a fortnight over the weekend, with data from TradingView showing BTC/USD focusing on $62,700, the site of a key long-term trend line and the 200-week simple moving average. Trader Daan Crypto Trades flagged short position liquidations as the price gained, with the 24-hour crypto total short liquidations reaching $167 million according to CoinGlass data.
The price gain occurred during a period of reduced market participation. The price gain occurred amid thinner exchange order books and a three-day US holiday weekend, creating conditions where smaller volumes could move price more aggressively.
Monday's historical weakness
But the weekend rally faces a headwind heading into Monday. Trader Killa warned that the past seven Mondays had seen major price weakness for Bitcoin. The pattern suggests BTC price action faced an "absolutely terrible" Monday track record, according to market commentary.
Macro tailwinds
Longer-term, some catalysts favor continued strength. The US nonfarm payrolls report came in below anticipated levels, sparking a softening in hawkish expectations of interest rate hikes. Gold rose 2% following the nonfarm payrolls report, signaling broader risk-asset appetite.
CME Group's FedWatch Tool showed a near-80% chance of the Fed holding rates at current levels at its July 29 meeting. Trading company QCP Capital identified renewed net inflows to US spot Bitcoin exchange-traded funds as a potential tailwind. These structural flows could support BTC if the Monday weakness pattern breaks.
