Bitcoin markets appear to have a hard time finding sustainable support above USD 8,500 levels. Even after the bullish breakout experienced only a couple of days ago, markets are again experiencing a dip, this time reaching low levels of USD 8,100.
The day’s signals
- Large sell0ffs crashed Bitcoin prices down from USD 8,500 levels where BTC/USD was at in the earlier hours of the trading session.
- The crash appears to be a continuation of the downward trend. This trend appeared following Bitcoin markets reaching a top above USD 8,800.
- Volatility still appears to be in play but this time around, leaning towards overall bearish sentiment.
GDAX BTC/USD charts are showcasing the market’s mood through a couple of interesting patterns. The first is an apparent market disdain when it comes to following up on positive price movements. The major crash for the day caused prices to drop from USD 8,500 levels down to USD 8,100 levels. With markets taking consideration for a few hours, traders achieved a recovery reaching slightly below USD 8,400 levels. Some brief consideration ensued and then yet another dip, this time with prices reaching a low at USD 8,200 price levels. From there on, prices have been pressured against reaching USD 8,400 levels again.
OKEX BTC/USD weekly futures still appear to be maintaining some positivity. Futures traders are keeping up the positive difference between futures rates and live market prices. That’s in continuation to the recently reached peak. A breach in the now sideways trailing prices could potentially limit that positive difference substantially. The recent hours where volumes have gone down leave markets especially vulnerable to another breakout that could end up being negative.
All in all, traders are certainly more cautious after the day’s volatility proved support hasn’t come on to back prices above USD 8,500. Interestingly enough though, while volumes have gone down, prices are now managing to rise under this setting. However, support for even the current levels proved to be unreliable throughout the day. The way Bitcoin markets are playing out, there’s no wonder traders appear skeptical in this moment.
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The post Bitcoin Price Analysis, 16th May 2018: Bitcoin Markets Stagnant Above $8,000 appeared first on BitcoinNews.com.