Bitcoin Price Struggles to Recover After Fall Down to $820

Bitcoin Price Struggles to Recover After Fall Down to $820

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Bitcoin’s price fell down to $820 levels today, and in spite of it trading around this level for a while bitcoin price rates have since stayed to levels around $900 after some large buy orders boosted the price. It seems as though traders might have a limit as to how low bitcoin prices can fall in such a short period of time.

Major Signals

  • BTC/USD markets have apparently come to terms with the downfall from grace as the rally appears to have ended.
  • The fact that bitcoin markets needed a large sell order to recover from further price falls goes to show that the market’s sentiment is far from bullish but also highlights that selling pressure has been exhausted.
  • Support for $900 levels seems to be non-existent while resistance some seems to have taken shape in the form of sell walls that’d make a price rise above $900 hard.

bitfinex-btcusd-chart-2017-01-07-at-22-42-34Bitfinex BTC/USD charts highlight how volatile and bitcoin markets are while still seemingly appearing under pressure. It’s hard for traders to shake of the shift to a bearish market sentiment that came in so suddenly. Bitcoin price rates have only kept going down ever since the downward spikes ending the rally took place.

Today’s recovery from sub $900 levels was unexpected yet didn’t have an immediate bearish reception. This goes to show that there might be some limited positivity among traders. The fact that BTC/USD still trades at levels that the recovery spike brought the price at -in spite of falling from the short rise afterward- certainly hindsights that traders have a certain limit in mind as to how fast and how far bitcoin prices can fall.

okcoin-btcusd-weekly-futures-chart-2017-01-07-at-22-42-46Futures traders are going through one of the least exciting weeks in futures markets. As seen in the OKCoin BTC/USD weekly futures chart, futures rates were at several points lower than live BTC/USD rates. This continuation of the generally bearish mood showcases how many traders have lost confidence in the future of bitcoin’s price, thinking that it could be a while until bitcoin markets see go through an uptrend again.

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