Bitcoin Price Analysis: Something is going on with the volume
- Bitcoin has recovered slightly on Tuesday after the recent price drop.
- There is a massive volume spike at the recent support level of 3,858.00.
BTC/USD daily chart
Below is the daily chart of BTC/USD with Coinbase data. When looking at the volume analytics I noticed a very large spike during the recent sell-off. After further digging, I noticed that on all timeframes a big batch of buying volume came in at 3,858.00. Make of that what you will but its hard to imagine why the volume peak is higher than the euphoric days of 2017-18.
In terms of chart patterns, the current set up is a broadening pattern. These tend to a be nightmare to trade as the risk/reward ratios are harder to quantify. A move toward 6K would be a great sign as the price would be moving back into a higher distribution. The major support low of the current distribution is now 3,181.24 and if the price remains in this zone that's the support level to watch.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
