Traders saw BTC/USD managing to break above $750 and stay above it for a short period of time yesterday, yet in the end, selling pressure to outweigh buy orders once again. Support at this point doesn’t seem nonexistent, but it’s underlying at around $730.
- Increased volatility as a result of the recent breakthrough above $750.
- Support is weak before $730 levels, buying pressure has also weakened in comparison to yesterday.
- Decreased volume with resistance becoming more apparent again, perhaps signaling a shift in market sentiment.
As seen in the above Bitfinex BTC/USD chart, selling pressure seems to have performed another hostile takedown on the price. The price dropped down to $727 after a few large sell orders but didn’t manage to recover to previous levels, ultimately balancing out around $735.
On the other hand, resistance also seems to be having a greater impact on today’s trading session amidst lower volumes. It might just be that we’re going through Black Friday, but even if that’s the case, bitcoin traders seem to have given up on putting buy orders above $730. And with the largest orders of the day pushing the price down effortlessly, the decreased volume doesn’t make things look much better.
The market sentiment has shifted as more traders and probably preparing for what seemed like an inevitable entrance to a bear market prior to a few upward price spikes that saw a swift correction within this week.
Looking through OKCoin’s BTC/USD weekly futures, one would say that the market had a hard time settling on a realistic price after today’s trading session. Throughout the day, the market seems to have taken a downturn as more and more traders are now betting on bitcoin’s price staying below 750$.
Overall, most traders seem to be preparing for further price drops, so anyone looking to buy bitcoin at levels above $730 should do so with extra caution. Profit taking from past weeks might still come in effect if the market downturn appears to be worsening.