According to the Bitcoin [BTC] price-volume chart analysis the major cryptocurrency that had been trading sideways since 22nd Sept., dropped sharply to a 3 week low at around $6,200 USD, confirming several breakdowns.
The considerable indicators on the daily chart additionally turned pessimistic, substantiating a negative moving average crossover on the long duration charts.
However, bulls regained the management soon, opening the doors to the key support of $6,000 USD.
Furthermore, the bullish case now seems to be stronger than it did 24 Hrs. past due 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 and additionally penetrated the support of the trendline drawn from the 24th June’s Low to 11th Aug. low.
This will seemingly encourage the bears as this trendline had repeatedly placed brakes on the sell-off within the first half of Sep., further the trendline is presently acting as a stiff resistance.
Trading volumes jumped to multi-week highs
The daily commercialism volumes on one of the renowned exchange ‘Bitfinex’ jumped to 5 weeks high yesterday. More significantly, total commercialism volume across all cryptocurrency exchanges rose by around 36% to $5.18 Bln – the very best level since 21st Sept.
The fact that these trading volumes jumped suggests that a larger reliance are often placed on the pessimistic move. Hence, a high-volume drop is often thought-about a powerfully negative indicator.
Short positions rose whereas long positions tanked
BTC’s high-volume downfall to a 3-week low was among a strong reason (10%) for the drop of the BTC/USD pair long positions and around 7.4% rise within the BTC/USD pair short positions on Bitfinex.
A break below key support level, once accompanied by an unwinding of long positions and an increase in brief positions, indicates scope for a deeper sell-off.
However for now, it appears safe to mention that for Bitcoin [BTC], the trail of least resistance is following a drawback. 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 lows is probably related to the oversold conditions reportable by the relative strength index [RSI] on the hourly and 4-hour chart.
Bitcoin [BTC] Examination
- BTC kick-started a pessimistic move toward $6,000 USD on 11th Oct. by falling to lows even below $6,300 USD.
- The possibility of a further drop to $6,000 USD has enlarged seeing the market fluctuation within the past 36 Hrs, as range breakdown was backed by a pick-up in commercialism volumes and an increase within the short positions and a drop by the long positions.