“FalconX’s Head of Research Sees Bitcoin Structure as ‘Extremely Bullish'”

FalconX: Bitcoin Market Structure Signals Ongoing Strength Despite $11K Pullback

Despite trading nearly $11,000 below its August 14 record high, bitcoin continues to show signs of strong internal market structure, according to FalconX Head of Research David Lawant.

In a post on X Wednesday, Lawant highlighted that even modest pullbacks are met with aggressive buying activity, as seen in real-time order book data from major exchanges. He noted that after minor dips, sell orders tend to evaporate while buy orders surge — a shift he called a “flip” from the ask to the bid side.

“This behavior suggests sellers aren’t committed to pushing the price lower,” Lawant explained. “Instead, buyers quickly absorb supply, a hallmark of a bullish market.”

The repeated pattern implies that large investors — likely institutions or deep-pocketed funds — are treating small dips as entry points. Rather than indicating weakness, the lack of sustained selling reinforces market confidence in bitcoin’s longer-term trajectory.

Lawant shared a FalconX chart illustrating how bitcoin’s order book consistently leans toward the buy side after brief declines, showing strong underlying demand. This kind of structural resilience, he noted, typically precedes continuation rallies.

Although bitcoin is still off its August high of $124,481, analysts say the persistence of buy-side support suggests sentiment remains bullish.

Technical Breakdown (Aug. 19, 17:00 UTC – Aug. 20, 16:00 UTC)

Price Range: Bitcoin traded between $112,437.99 and $114,337.77, a spread of nearly $1,900.
Intraday Low: Around 13:00 UTC, the price dropped to $112,652.09 due to liquidation pressure, before bouncing sharply.
Volume Spike: The recovery was backed by 14,643 BTC in trading volume — well above the daily average of 9,356 BTC.
Support Zone: The $112,400–$112,650 range now serves as a key area of volume-backed support.
Late-Session Rally: From 15:47 to 16:46 UTC, BTC rose from $113,863.05 to $114,302.43, closing at $113,983.06.
Resistance Levels Broken: Price breached resistance at $113,500, $113,650, and $114,000, with trading volumes peaking above 250 BTC per minute — a strong signal for short-term bullish momentum.

Outlook

The behavior of bitcoin’s order book and the volume-backed recovery from intraday lows reinforce analyst views that the recent pullback is likely a buying opportunity, not a bearish reversal. With institutional demand remaining robust, technicals suggest the broader uptrend remains intact.