Bitcoin Price Analysis: BTC/USD moving within highway to hell, huge volume reduction
- Bitcoin price seen up with minor gains late on Tuesday of around 0.50%.
- BTC/USD price action is moving within a descending channel formation.
- Volumes continue to decline greatly, Binance data shows a 40% drop in comparison to last month.
The Bitcoin price was seen holding very minor gains of some 0.50%, in the latter stages of trading on Tuesday. BTC/USD remains a victim of cautious trading, with a generally muted market, which is seen across the board.
Volumes are down sharply, they are the lowest that have been seen since mid-late October 2018, during a very quiet and range-bound period. Worth also noting, Looking at data via Binance, the US dollar-based market for Bitcoin has seen a 40% reduction in trade across January when compared to the previous month.
Technically, price action is moving within a steep descending channel pattern. This is subject to an eventual breakout to the upside, however it may travel further south, towards $3000, before the bulls come back to life. BTC/USD is hugged closely to the upper trend line of the mentioned descending channel formation, gradually pressing for a breach, but not having enough momentum for now.
BTC/USD daily chart
Author
Ken Chigbo
Independent Analyst
Ken has over 8 years exposure to the financial markets. He started his career as an analyst, covering a variety of asset classes; forex, fixed income, commodities and equities.
