Bitcoin, the pioneer cryptocurrency, recently displayed a fascinating trading pattern that has captured the attention of market enthusiasts. A technical formation known as the double top emerged with an associated increase in trading volume. This pattern often points towards a shift in market sentiment.
Crypto analyst Rekt Capital shared a Twitter post providing insights on Bitcoin’s changing trading volumes and potential market shifts:
The #BTC Double Top formed on inclining volume
— Rekt Capital (@rektcapital) August 22, 2023
But the continuation after that second top formed developed on declining volume
Until the most recent sell-side volume breakout
But this seller volume breakout was still less volume than when $BTC reversed in prices on prior… pic.twitter.com/BQYUG81b7N
However, as Bitcoin moved past this notable peak, a contrasting trend of receding trading volume became evident. This gradual decrease persisted until the market saw a spike in sell-side activities. Despite its prominence, this uptick failed to match the intensity of volume observed during prior price declines for the cryptocurrency.
Bitcoin might be on the cusp of witnessing increased seller activities before reaching a state commonly termed seller exhaustion. When sellers start to deplete their holdings and trading vigour, it could signal potential changes in market direction. Observers and traders now remain vigilant, understanding that these volume patterns could heavily influence the future of Bitcoin’s price. It remains imperative to watch the evolving landscape, keeping these volume dynamics front and centre.
The Bitcoin price analysis revealed that it is currently trading in a bearish market environment, with the bears holding a firm position. BTC is trading at a low of $26,058, representing a loss of over 0.56% over the past 24 hours. The BTC token continues to move in a bearish channel, with bulls exercising greater market control.
Earlier today, BTC touched a low of $25,520 after breaking below$ 26k level. The BTC bulls have been struggling to defend the $26,000 level for some time now. However, if the bears break below this support level, it could lead to a further price fall. On the other hand, if the bulls manage to hold onto this support level and push the price back up, Bitcoin could experience a much-needed bullish reversal.
The volume analysis also indicated a continued negative trend for the BTC token. The trading volume has been falling steadily since the past week and is currently at a low of $15.51 billion. The market cap stands at $507 billion, losing 0.11% over the last 24 hours. The cryptocurrency has a circulating supply of 19,465,531 BTC coins and a max. supply of 21,000,000 BTC coins.
The daily technical indicators for the BTC token are also trending downwards, with 20-EMA, 50-EMA, and 200-EMA all pointing to the bearish side. The relative strength index (RSI) is currently at 20.58, just below the 30-level, which indicates that the market is in oversold territory. The MACD is also negative and continues to decline, suggesting that the selling pressure would likely remain consistent soon. The MACD line and the signal line are trading below the 0 level, further confirming a bearish outlook for the BTC market.
To sum up, the BTC market is currently under bearish pressure, with the bulls failing to push past key resistance levels. The support level for the token is present at $26,000, and if this level is broken, then it could lead to further losses for the BTC token. The selling pressure is still strong and could continue dominating the market in the upcoming days.
