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Bitcoin (BTC) Price Slumps on Heavy Selling Interest

Bitcoin (BTC) Price Slumps on Heavy Selling Interest

2019-05-17 08:09:00
Nick Cawley, Strategist
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Bitcoin (BTC) Price Outlook, Chart and Analysis:

  • Large sell orders drive prices sharply lower.
  • Next move dependent on volume and liquidity.

IG Client Sentiment Datashow how retail are positioned in a variety of cryptocurrencies. See how daily and weekly positioning can affect our trading bias. Bitcoin (BTC) trade data shows 75.0% of traders are net-long, a strong contrarian bearish signal. However, recent daily and weekly changes in sentiment suggest that Bitcoin may soon move higher.

A Guide to Day Trading Bitcoin and Other Cryptocurrencies.

Bitcoin (BTC) Battered by Sell Orders

Bitcoin slumped around 15% in a 30-minute time frame in mid-day trading in Asia before bouncing back from its spike lows. Bitcoin has enjoyed a strong rally in the last week and while profit taking was expected, the sheer speed and ferocity of today’s move points to other drivers behind the move. According to many market experts, a large sell-order in one of the OTC crypto-exchanges sparked the move, with the knock-on effect in other exchanges exacerbating the move. Add into the equation a low volume (bid) market and likely algo and arbitrage activity and ‘spike’ markets are increasingly likely.

After hitting a high of just under $8,000 on Thursday, Bitcoin hit an Asian mid-day low of just under $6,600 before rebounding sharply to a current quote of $7,300. In earlier articles this week we warned that the market was flashing overbought signals using the CCI indicator – with some coins at extreme levels. The cryptocurrency market is well known for trading at one extreme or the other, and a period of consolidation is needed if the market is to continue its positive run in 2019.

Bitcoin, Ripple, Litecoin – Latest Rally May Have Further to Run

Bitcoin (BTC) 30-Minute Price Chart (May 14 – 17, 2019)

Bitcoin (BTC) Price Slumps on Heavy Selling Interest

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on Bitcoin – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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