According to the Bitcoin [BTC] price-volume chart analysis the major cryptocurrencythathad beentradingsideways since 22nd Sept., dropped sharply to a 3 week low at around $6,200 USD, confirmingseveralbreakdowns.
The considerable indicators on the daily chartadditionallyturnedpessimistic,substantiatinga negative moving average crossover on the longdurationcharts.
However, bulls regained themanagementsoon, openingthe doors to the key support of $6,000 USD.
Furthermore, thebullishcase now seems to be stronger than it did24 Hrs.pastdue to these underlying factors:
Bitcoin [BTC] breaking key trendline support
From the Bitcoin [BTC] price-volume chart analysis, BTC witnessed a Bollinger band breakdown yesterday andadditionally penetrated the support of the trendline drawn from the24th June’s Low to 11th Aug. low.
This willseeminglyencouragethe bearsas thistrendline had repeatedlyplacedbrakes on the sell-offwithin thefirst halfofSep., further the trendline ispresentlyacting as a stiff resistance.
Trading volumes jumped to multi-week highs
The dailycommercialismvolumes on one of the renowned exchange ‘Bitfinex’ jumped to 5 weeks high yesterday.More significantly, totalcommercialismvolume across all cryptocurrency exchanges rose by around 36%to $5.18 Bln –the very bestlevel since 21st Sept.
The fact thatthese tradingvolumes jumpedsuggests thatalargerrelianceare oftenplaced on thepessimisticmove. Hence, a high-volume dropis oftenthought-aboutapowerfullynegative indicator.
Short positions rosewhereaslong positions tanked
BTC’s high-volume downfall to a 3-week low wasamonga strong reason (10%) for thedrop ofthe BTC/USD pair long positions and around7.4%risewithin theBTC/USD pair short positions on Bitfinex.
A break below key support level,once accompanied by an unwinding of long positions andan increase inbrief positions, indicates scope for a deeper sell-off.
However for now, itappearssafeto mentionthat for Bitcoin [BTC],the trailofleast resistanceis following adrawback. At the time of reporting,the price of Bitcoin [BTC] is around $6,282.4 USD which is 0.05% higher than yesterday.
The slight recovery from three-week lowsis probablyrelated tothe oversold conditionsreportableby the relative strength index [RSI] on the hourly and 4-hour chart.
Bitcoin [BTC] Examination
- BTC kick-started apessimisticmove toward $6,000 USD on 11th Oct. by falling to lows even below $6,300 USD.
- Thepossibilityof a further drop to $6,000 USD hasenlarged seeing the market fluctuationwithin thepast 36 Hrs, asrangebreakdown was backed by a pick-up incommercialismvolumes andan increasewithin theshort positions and adrop bythe long positions.