The BTC/USD market did eventually see a correction after the price rise. All it took for the price to drop again was a few large back to back sell orders, although the price has since recovered.
- A few substantial sell orders dropped the price down to $750 levels, following the price spike that had pushed BTC/USD prices up to $775.
- The lack of strong support became apparent, yet there has since been a recovery and resistance doesn’t seem to be especially strong either.
- Sideways trading ensued after the recovery from the price drop.
The market seems to be going through an aftershock after the recent rally. As we can see in the above Bitfinex BTC/USD chart, the market seems to have quieted down significantly. Trading volumes have gone down, and the buying pressure seems to have decreased dramatically since the rally.
The recovery from the preceding price fall wasn’t swift either, but at least BTC/USD keeps trading to levels higher than the ones prior to the recent rise. The current sideways trend doesn’t make for a great outlook among lower trading volumes either, but at least we know that support hasn’t died out completely.
Resistance might be outweighing support once again, yet support seems to have formed at $760 levels. The recovery to pre-spike levels wasn’t particularly swift yet the recovery from levels below $760 was extra speedy.
Futures markets seem to have been caught by surprise by the recent correction. The recent correction seems to have been quite divisive, especially since the OKCoin BTC/USD weekly futures market peaked while live BTC/USD markets were going through a bull run.
In general, traders seem to be quite indecisive today. The price rally ended up spreading uncertainty all over bitcoin’s markets after trading volumes returned back to normal. Perhaps more and more traders are being cautious, expecting further falls after the current sideways trading trend.