The past trading session has lead Bitcoin prices through a notable price fall. Prices went from levels slightly above USD 7,000 to touching a low of USD 6,600.
The day’s signals
- A large selloff took prices to levels much lower than USD 7,000.
- With volumes considerably down since past trading periods, the market seems unable to withstand the selling pressure.
- With prices down at around 5%, the past period of volatility seems to be taking a downward turn.
GDAX BTC/USD charts showcase how much of an impact selling pressure can have under today’s market sentiment. Traders are leaving markets prone to downward pressure and prices continue to trail sideways unless it’s for large selloffs. Any notable volumes through today’s trading session were only observed on a couple of points through the day. A handful of sell orders might have taken prices down with them and so far, there doesn’t seem to be a positive response.
OKCoin BTC/USD weekly futures prices are moving towards a more negative sentiment. Naturally, the volatility through the past week has driven futures traders to be more cautious. This is notable when it comes to pricing in any positive movements. The recent trading activity above USD 7,000 levels had been reflected with a positive light in futures markets. Still, the recent dip in Bitcoin’s price has led to a big divide between futures prices and live market rates.
All in all, a notable aspect of recent price trends is that volatility plays a major role in recent price movements. Spikes in BTC/USD markets are quite frequent, leading to considerable volatility with great price differences even within the same day. That is a situation that day traders could potentially benefit from.
Day trading is something that would be bringing liquidity into Bitcoin markets. Even more so at times of extra volatility. However, as the recent trading sessions prove again and again, market sentiment doesn’t favor long positions and further price spikes are not unlikely. Not to forget, though, that the lows that were reached at the beginning of April are close to being breached again.