BTC/USDT trend analysis: Bitcoin corrects as market tumbles

Description

TL:DR Breakdown Bitcoin drops below the $17,000 mark as the wider crypto-market sees red. Trading volume spikes to over six times the average as traders capitulate. A sharp correction has occurred but BTC/USDT remains bullish in the medium term. Overview (24-hour) BTC/USDT opened the trading period at 19,150.22 USD. It reached a high not too … Read more

TL:DR Breakdown

  • Bitcoin drops below the $17,000 mark as the wider crypto-market sees red.
  • Trading volume spikes to over six times the average as traders capitulate.
  • A sharp correction has occurred but BTC/USDT remains bullish in the medium term.

Overview (24-hour)

BTC/USDT opened the trading period at 19,150.22 USD. It reached a high not too far from this opening of 19,327.80 USD (+0.93%), before declining significantly to a low of 16,334.00 USD (-14.71%). At the time of writing, BTC/USDT has risen again to 17,146.72, 10.46% below the trading period’s open.

BTC/USDT’s total trading volume in this trading period was 144,129 BTC, an increase of over 50% compared to the previous trading period trading volume of 93,267 BTC.

The Historical Volatility Index (HVI), measured 97.71 (high-medium) during this trading period, compared to 52.12 (medium) in the previous trading period.

Price Analysis

After opening at 19,150.22 USD and rising to a high of 19,327.80 USD (+0.93%) shortly after, BTC/USDT relinquished control to the bears and commenced a strong correction, dipping into a previously established support zone between 18,555.63 USD and 18,399.41 USD.

It then rose to 18,915.03 USD, before breaking through that support zone shortly after to a stronger previously established support zone between 17,774.68 USD and 17,424.57 USD. After a few failed attempts to use this zone as a base, BTC/USDT continued its decline to the period’s low of 16,334.00 USD, making the maximum decline in this period -14.71%.

At the time of writing, BTC/USDT has risen again to 17,146.77 USD.

Volume Analysis

BTC/USDT opened this trading period with a trading volume of 2,098 BTC, and a mean value of 1,896 BTC carried over from the previous trading period. There were two notable spikes in trading volume during this period, the first occurring when BTC/USDT broke below the first support zone between 18,555.63 USD and 18,399.41 USD, with trading volume hitting 12,600 BTC.

The second occurred shortly after as the price descended towards the trading period’s low, reaching 12,378 BTC. This brought the mean value up to 4,947 BTC. At the time of writing, BTC/USDT’s volume has settled at 4,021 BTC, with a mean value of 4,244 BTC.

The Accumulation/Distribution (Acc/Dist) has seen large swings during this period, as is normal with sharp increases in trading volume. The On Balance Volume (OBV) indicator has trended downwards throughout the trading period.

Volatility Analysis

BTC/USDT started the trading period with relatively low volatility, with HVI measuring 5.57 (low-medium). At around 00:00 am, this started to increase, rising to a height of 26.52 (extremely high). At the time of writing, HVI reads 22.05 (extremely high).

Price Prediction

This trading period saw a significant decline in BTC/USDT’s price, reflecting a wider sell-off in the crypto-markets more generally. Trading volume has spiked several times over the trading period, corresponding with price breaking below two previously established support zones.

Volatility, has also considerably increased, moving from the low-medium levels to the extremely high levels.

Bitcoin is bearish. But with volatility increasing rapidly alongside and momentum for the decline coming from quite large and isolated spikes in trading volume, this might just be a short term correction. Time will tell.

In the news

Coinbase CEO fears rumored crypto wallet rule will affect US crypto-economy.

OKEx Bitcoin outflows spiked shortly after withdrawals resumed.

Stablecoin Tether hits $19 billion in total assets.

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