Bitcoin Price Bows to Selling Pressure, Reaches Below $930

Bitcoin Price Bows to Selling Pressure, Reaches Below $930

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As the rally pushing the price up seems to have been brought to an abrupt end by large sell orders in yesterday’s trading session profit taking seems to have started becoming a leading force in BTC/USD markets. Bitcoin’s price even fell below $930 but has since recovered above $950.

Major Signals

  • Trading volumes have persistently been much higher than average in the latest trading sessions, although today’s trading volumes are down compared to the ones of previous trading sessions.
  • Selling pressure is outmatching buying pressure as more and more traders seem to be losing interest in riding an eventual continuation to the rise, letting, profit taking take over.
  • The market’s sentiment certainly seems to have shifted away from how bullish it was at the peak of the rally, yet support for pre-rally levels has not been breached.

bitfinex-btcusd-chart-2016-12-31-at-01-31-42Bitfinex BTC/USD charts make it apparent that selling pressure stands behind more significant portion of the market’s movements in today’s trading session amids volatility. However, BTC/USD markets have not taken a complete downturn. All and all, It’s also important to remember bitcoin was trading below $900 on Christmas, a level that has not been breached yet.

While we didn’t see bitcoin’s price reaching above $1000, the fact that there’s support for levels above $900 after such breaks through resistance makes for a good base for the market’s future outlook. After all, volatility sure is expected after such rallies, and profit taking is always bound to take place.

okcoin-btcusd-weekly-futures-chart-2016-12-31-at-01-31-53Futures markets on the other hand,seem to have been exaggerating on sell orders quite a bit throughout this trading session, but the current recovery also appears to have received a proper follow through from futures traders in OKCoin’s BTC/USD Weekly Futures charts.

In summary, in spite of the fact that bitcoin’s price fell below $930, the recovery after that fall makes it feel like it’s not all gloom and doom in BTC/USD markets. The markets sentiment isn’t particularly bullish but traders were surely expecting such volatility as it’s not all bearishness either.

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