Bitcoin markets are going through a period of increased volatility with volumes going down. While prices peaked close to USD 8,400 today, support for such levels proved non-existent.
The day’s signals
- A big upward spike pushed prices close to USD 8,400 levels.
- A sideways trend ensued through a period of decreased volatility through the course of the day.
- Markets experienced a crash bringing prices down to USD 8,100 levels, ultimately leading to a breach of the USD 8,000 price point.
GDAX BTC/USD charts showcase how markets are still prone to being handled by large orders. Right now, most traders appear to have no clear direction in terms of a market sentiment. Notably, markets traded above USD 8,300 price levels for several hours, even peaking slightly below USD 8,400 before the day’s crash. While volumes at that time appear to have gone down, it’s worth pointing out that there wasn’t any notable resistance. The selloff only appears to have begun when the price was nearing USD 8,400 levels.
OKEX BTC/USD weekly futures markets appear to hold a notable deviation from live markets. It appears as though the recent volatility and lack of support have led futures traders to be more careful with their choices. The deviation between prices of live markets and futures remained throughout the course of the trading session, with no signs of backing down. It’s also worth mentioning that futures aren’t reflecting the large trading volume selloffs that live markets have. In spite of the lack of exaggerated sell orders though, the mood among futures traders is not positive.
In summary, it’s hard to miss how prices remain so easy to handle by large market orders as liquidity in Bitcoin exchanges went down slightly since the trading session preceding the weekend. Traders don’t appear to hold much confidence in how Bitcoin’s price could turn out. That, along with an increase in volatility aren’t helping in the formation of any support.
Upward movements aren’t receiving any positive response under this market sentiment and traders proved uneasy when they were given the chance to support a further price rise today.
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