It seems a far cry from the bullish sentiment being felt across the board two weeks ago when BTC rocketed from the depths of $7,350 before smashing its way through the first psychological barrier of $9,000 and then daring to poke its head above the second – and more significant – $10,000 mark, albeit briefly. Things looked to be settling down as the market was kept level by reasonably well sustained trading volume and the gravitational pull of $9,300 – a figure which seems to be becoming a favourite parking spot for bitcoin.
With memories of the recent touch to $10k still present, it would have been safe to assume on any normal trading chart that a steady sideways movement along $9,300 would spell out the narrative of something coiling for an attempt at making a robust test of the next step up.
But, as is often repeated by bitcoin observers, cryptocurrency markets tend to improvise and adlib, rather than follow the script.
Despite heading into the weekend full of positivity after recovering well from an uncomfortable week and climbing above $9,000, BTC this morning found itself below the lowest of the lines it created during last week’s drought.
It repeatedly bounced off $8,750 last week like a wet cow brushing its backside against an electric fence.
Today, however, it has behaved as though that fence wasn’t even there – a $5 green candle on $8,750 set against the backdrop of an overwhelming push to $8,650 was all that could be mustered.
It would be too early to call, but a glance at recent similar patterns would suggest there is further to fall in this market, although there would appear to be the hint of bullish support still prepared to arrest anything too serious.
Traditionally, this area has normally found fairly solid support levels above $8,400.
Again, there’s no script, but we’ve been here before on several occasions to see one of two things – a collapse of the support line and a fall into the lower half of the sevens, or a resurgent buy-in to put things back on an even keel in the mid-nines.
Market sentiment and volume levels are not giving too much away yet to know which direction this will turn, but it is a fairly safe bet to say that bitcoin looks unlikely to loiter around $8,700 for much longer.
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