Bitcoin Price Volatile After Break Through Resistance
The break through resistance at $900 levels in yesterday’s trading session received a follow up that was quite eventful. BTC/USD rates momentarily felt down to $850 levels but swiftly recovered -and kept trading- around $870. A recent price spike pushed the price back up, close to $900 it didn’t look like the market is ready to welcome another rise above such levels at the time.
Major Signals
- Bitcoin markets didn’t seem to be able to withstand selling pressure from back to back sell orders pushing the price down to $850.
- The fact that this dip follows a break through resistance at $900 levels goes to show that signals of a bearish market sentiment have not gone away.
- Another rise above $900 levels seems unlikely at the moment amid such volatility in spite of weakened resistance.
Bitfinex BTC/USD charts showcase how traders kept playing it safe after the post break through downward spike. Yet, the more recent upward spike pulled BTC/USD markets away from what seemed to be a sideways trading trend without traders being too negative about it.
Futures markets on the other hand, somehow seem increasingly pessimistic. With the recent downward spike only increasing the marginal difference between futures markets and live BTC/USD ones, it doesn’t seem like the negativity futures traders hold back on will be going away anytime soon.
In general, it seems hard for markets to sit on the long term rally’s achieved levels. Any and all downward pressure receives exaggerated followups whenever the market is in a bearish mood, but thankfully buying pressure has recently started making its presence in the market felt.
In spite of volumes being somewhat deflated, the market sentiment does not continue to be in decline unlike the mood the market was in for days after the major post-rally fall. With resistance looming around BTC/USD markets it’s not surprising that volatility follows resistance breakthroughs.
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