Bitcoin’s Bull Trend At Risk After High-Volume Price Dump
coindesk | February 25, 2019
Bitcoin dropped 9.3 percent yesterday on the back of high volumes, invalidating the triangle breakout witnessed last Monday. A UTC close below $3,714 today would validate Sunday’s bearish outside reversal candle and open the doors to levels below $3,400.The longer duration charts are signaling bearish exhaustion, however, and any drop to $3,400 or below could be short-lived. A move above $4,190 (previous day’s low) is needed to revive the bullish outlook. Bitcoin (BTC) nosedived overnight, clouding the interim bullish outlook, and a deeper drop could unfold if key support near $3,700 is breached. The leading cryptocurrency by market capitalization rose to highs near $4,200 in the Asian trading hours yesterday, as expected, only to fall back to levels below $3,800 by UTC close. That 9.31 percent slide is the biggest single-day drop since Jan. 11.Notably, trading volumes across all cryptocurrency exchanges totaled $10.79 billion on Sunday – the highest since April 25, 2018, according to CoinMarketCap. The high-volume sell-off erased gains seen over the previous five days, thereby weakening the bullish case put forward by last Monday’s break above $3,800.That said, a bullish-to-bearish trend change would be confirmed only if the sell-off seen yesterday is extended to levels below $3,700. Further, the losses following a potential bearish reversal could be short-lived, as signs of seller exhaustion have emerged on longer duration charts.