Bitcoin’s market structure continues to exude bullish vibes despite trading nearly $11,000 below its August 14 record high, according to insights from FalconX’s head of research, David Lawant. In a recent analysis shared on social media platform X, Lawant delved into the intricacies of Bitcoin’s order book dynamics and highlighted a phenomenon that could reassure crypto enthusiasts about the asset’s long-term trajectory.
Order Book Dynamics and Market Sentiment
Lawant’s observations reveal a fascinating pattern within Bitcoin’s order book—a live record of buy and sell offers on exchanges. When Bitcoin’s price experiences minor pullbacks, sell orders tend to evaporate quickly, making way for an influx of buy orders. This “flip” from the sell side to the bid side suggests that sellers are not sticking around to drag the market down. Instead, there’s an immediate resurgence of demand, hinting that big players—perhaps institutions and well-capitalized funds—are seizing these downturns as buying opportunities. This aligns with broader market conditions, as detailed in our recent coverage of Crypto Market Conditions ‘Exceptionally Strong’ as Bitcoin, Ethereum, XRP Advance.
“What we’re seeing is an unmistakable signal of confidence in Bitcoin’s longer-term prospects,” Lawant explained. “The swift disappearance of sell orders and the subsequent influx of buy orders reveal a market structure that’s robustly bullish.”
The chart shared by Lawant underscores this interpretation, illustrating instances where Bitcoin dipped slightly from its peak levels, only to be met by a wave of buy orders supplanting sell orders. This behavior is emblematic of a bullish market structure, where demand is poised to soak up any available supply.
Technical Analysis Highlights
In the technical realm, Bitcoin’s recent behavior paints a vivid picture of resilience. According to CoinDesk Research’s data, between August 19 and August 20, Bitcoin fluctuated within a $1,899.78 range, touching lows of $112,437.99 and highs of $114,337.77. At around 13:00 UTC on August 20, Bitcoin’s price dipped to $112,652.09 due to liquidation pressure, yet it quickly rebounded.
This recovery was underpinned by robust trading activity, with 14,643 BTC changing hands—significantly higher than the 24-hour average of 9,356 BTC. This surge in trading volume established the $112,400–$112,650 range as a critical volume-backed support corridor. During the final hour of this analysis period, Bitcoin rallied from $113,863.05 to $114,302.43, breaking through resistance levels at $113,500, $113,650, and $114,000. The elevated trading volumes of over 250 BTC per minute signaled the onset of a short-term uptrend.
Implications and Future Outlook
Bitcoin’s recent price action and order book dynamics bolster the argument for a bullish market structure. Despite its current trading level below the August 14 peak of $124,481, the market’s resilience and swift recovery from dips suggest a strong underlying support. Analysts like Lawant see these dips as buying opportunities rather than warnings of impending downturns. However, some analysts question whether Bitcoin’s bull run is losing steam, as discussed in Is Bitcoin’s Bull Run Losing Steam? Here’s What Crypto and Nasdaq Market Breadth Indicates.
However, it raises questions about whether this trend can persist, especially in a market known for its volatility. As the crypto landscape continues to evolve, the interplay between institutional involvement, market sentiment, and technical factors will likely shape Bitcoin’s path forward.
As of today, August 21, 2025, Bitcoin’s market structure appears to be gearing up for an intriguing journey ahead. With long-term players seemingly poised to capitalize on short-term dips, the crypto community is left to ponder: Will the bullish momentum hold, or are there twists yet to unfold?
Source
This article is based on: Bitcoin Market Structure ‘Still Looks Extremely Bullish,’ Says FalconX Head of Research
Further Reading
Deepen your understanding with these related articles:
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- Bargain Hunters Emerge as Bitcoin Remains Under Pressure: Crypto Daybook Americas
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
