Bitcoin Price Corrects After Brief Bull Run
Some unexpectedly large buy orders shot bitcoin’s price back above $750 this evening. The market is still trying to adapt to this sudden change but it seems like there’s quite a bit of resistance to further upward movement.
- Large orders pushed BTC/USD back above the $750 level.
- Support against major price drops seemed to be weak down to 730$
- Major sell walls are currently holding back the price from rising further.
As seen in the Bitfinex BTC/USD chart above, few large back to back buy orders outweighed the selling pressure that was dominating the market after the weekend, but bulls seem to have started losing the fight once again after the critical point of $750 was surpassed. As seen in the Bitfinex BTC/USD chart above, the price didn’t stay above $750 for long, similarly to how things went during throughout the weekend.
Things are a bit different this time though, the buildup has been more gradual and buy walls appear to be substantial; seemingly posing enough resistance in order to prevent the price from dropping far below $730.
The $730 price level really is a key point to this week’s trading session as it’s the price BTC/USD corrected to after the crash in the past weekend. It can be perceived as a short-term support level for the up and coming days.
As seen in the above OKCoin BTC/USD weekly futures chart, the fact that Bitfinex BTC/USD fell to 730$ didn’t affect the market sentiment all that much. Price drops caused by large sell orders were met with counter orders and the recovery was swift.
In summary, the market has showed us that BTC/USD is unlikely to fall below $730 for now, yet there’s still a lot of resistance on levels above $750. Given that Bitfinex BTC/USD managed to breakout through resistance during Tuesday’s trading session means that a lot of volatility is to follow, which in its turn marks the end of sideways trading in the market.
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