Bitcoin (BTC): Participation decreases after an 80% rebound
Credit: Pixabay – Eivind Pedersen
The 80% recovered Bitcoin price since the $ 3,850 lost strength but no support has been broken yet; let’s do it technical point.
Important technical factors of the article:
- The Bitcoin price has recovered 80% from its lowest point at $ 3,850 on Friday March 13th. The market is gradually clearing the declining shock of Thursday March 12th.
- Although no technical support is interrupted, the Participation in the recovery is declining sharply this week. Be careful …
After the stock market shock on Thursday, March 12, and the sharp decline in the open position in the future BTC contract, the Bitcoin price hit a low of $ 3850 on Friday, March 13.
The market stabilized and then started 80% bullish recoveryin a rapidly growing volume with an increased involvement of institutional traders.
However, in three sessions the market was stable and volatility plummeted. Is there an immediate risk that the rebound will end?
In this new technical analysis contribution to the course of the BitcoinI propose two graphics to answer this question:
- The first graphic (top) shows the Japanese candles in daily data and shows the most important thresholds for chartists.
- The second graphic (below) sets the structure of trading volume by price level from $ 10,000 to a low of $ 3,850.
Very long-term technical support ($ 4,200 / $ 5,000) led to an upward effect80% of the rebound is not nothing. However, a sword made of graphic Damocles remains. It is the fall session on Thursday March 12th, peaking between $ 7,600 and $ 8,000. The idea is to gradually delete this session. But the market has lost strength since 3 sessions, the volatility has disappeared from the radar screens.
So let’s be objective: No support has been broken at the moment, but the situation is tense. The support to absolutely not break is $ 6500, it MUST be held, otherwise a new drop leg will arrive. The short-term uptrend is still active, its invalidation threshold is $ 6500.
Now look at the diagram showing the volume structure between 10K and 3.8K. The majority of the exchanges took place between 7600/8000 on the one hand and 8500/8700 on the other. It is therefore still credible to trend towards $ 7,100 and $ 7,600, but this requires the return of a high volume session.
Bullish and Bearish traders look like two faience dogs, the graphic limit is $ 6,500. Beware of the sudden return of volatility.
follow Vincent Ganne on Trading View for further analysis on the financial markets. The technical thresholds and the trend given above are based on the technical approach “price, dynamics, mood, Ichimoku”. The data comes from Bitstamp and the graphics of TradingView.
This content is for informational purposes only and does not constitute an investment recommendation. We remind you thatInvesting in crypto assets, including Bitcoin, is extremely risky. Cryptocurrency prices are prone to large and unpredictable price fluctuations.