Not much positive progress is to be observed in BTC/USD markets over the last few days. With breaches that are continuing to push prices to new lows, Bitcoin price is now pressured around USD 8,000.
The day’s signals
- Uncertainty continues being a core element of Bitcoin markets with volatility now also increasing.
- While trading volumes are met with a slight decline, traders are still unable to keep prices above USD 8,000.
- Markets seem more prone to downward price moves with a low around USD 7,750 being reached, as prices moved lower than before.
GDAX BTC/USD charts are indicative of how prone markets are to downward pressure throughout today’s trading session. Large sell orders and widespread selloffs played a big role in driving prices down through the day’s course. So far, attempts for a recovery haven’t been very successful. Traders would eventually lead prices to levels lower than those at the beginning of each recovery. Prices now seem to be looming slightly above USD 7,900 levels but with a lack of apparent support, the sustainability of such levels can’t be guaranteed.
OKCoin BTC/USD weekly futures charts show that traders have been keeping their distance from live markets throughout the course of the day. Futures prices remained below live BTC/USD prices, with large dips furthering the divide. Futures traders are most likely now compensating for the slight positivity that they showed support for over the last few days. Now, with back-to-back breaches in Bitcoin’s price showing that most traces of positivity are crushed, traders are naturally becoming more cautious.
On the bright side though, the largest effect on price movements today could be attributed to only a few sizeable selloffs. While this doesn’t make the end outcome any more positive, it’s the market’s response that provides an indication of how bad things can be. Admittedly, the market sentiment that this trading session is showing isn’t great but the measured response from traders is a good indicator that the bearishness might not be all that bad just yet.
In conclusion, BTC/USD markets might be closing on a slightly negative note today but if price falls are going to be limited to that extent then it’s only the support breaches that traders should worry about. It’s certainly not the first in the last couple of weeks but at least today, markets had a response to downward movements. Although the attempted recovery was not so successful, it goes to show that the market’s mood might not be fully negative.