Bitcoin markets went through a period of uncertainty through the day with selling pressure leading to a breach of support that touched the low 0f USD 8,300 across BTC/USD exchanges. Markets appear to be faced with profit taking after the shortlived peak above USD 9,000 on Wednesday. In the end, today’s trading session was met with a characteristic U-shaped recovery.
The Day’s Signals
- Markets are pressured by profit-taking and selling pressure expressed with back-to-back sell orders.
- A low touching USD 8,300 was reached only shortly after support was breached.
- The market’s response to sudden buying pressure resulted in a U-shaped recovery in the preceding hours of the trading session.
GDAX BTC/USD charts are showcasing that traders are still uncertain as to whether or not current price levels can be sustained and the panic response to a falling price is indicative of that sentiment. The apparent lack of support quickly prompted even more traders to panic after USD 8,500 price levels were breached. For now, support appears to be shaping up to slightly lower levels, closer to USD 8,300. That is, the price level support seems to have kicked in, leading to today’s U-shaped recovery pattern.
OKCoin BTC/USD weekly futures showcase that the second wave of the crash was met with a more exaggerated response among futures traders. Initially, futures prices were more closely following live prices amid the initial crash. However, futures traders appear to have started worrying further along the downward path. It was only after the second wave of back-to-back sell orders that futures prices breached below live prices of BTC/USD markets.
Shortly after the breach that lead BTC/USD prices to touch USD 8,300 price points for a short time, sizeable buy orders pushed prices back up. For now, prices are resting closer to USD 8,600 but the signs of a recovery appear to be weakening. Evidence of depleting support even amid stable volumes sends ripples of a market sentiment that hasn’t improved much across markets.
All in all, the continuous breaches of support appear to be limiting the trader confidence in rising prices. Further price falls are not to be considered unlikely under such a market sentiment. And yet, today’s response to an already major breach was a swift recovery. The market appears to be back under the hood of a bearish mood which might make prices susceptible to the effects of selling pressure.