As of today, a breach through the weak support at $1000 levels was close but was eventually followed by a swift recovery with BTC/USD rates finally settling around a $1010 price point.
Major Signals
- BTC/USD rates fell from a peak above $1050 levels after the weakened selling pressure managed to breach the apparently weaker support
- It’s not obvious that the market’s sentiment is still not ready to support upward price swings
- Support at even $1000 levels seems dangerously weak through the recent downturn as the market’s bearish sentiment continues
OKCoin BTC/USD weekly futures charts are continuing to showcase quite a bit of bearishness that futures traders have gotten used to lately. The recent price fall has caused the margin between futures rates and live BTC/USD prices to grow significantly. Futures markets are really counting on a continuation of the current market mood.
Summarizing, it’s important to highlight that the recent recovery has so far been unsuccessful at helping BTC/USD rates to return at price levels as those prior to the fall. With buying pressure backing down and support weakened, traders are naturally playing safe. A break out from such a mood would require selling pressure appearing to be exhausted.