bitcoin’s corrective rally has stalled around $6,400 on Monday amid low trading volumes.
The leading cryptocurrency remained bid over the weekend as expected, courtesy of Thursday’s strong from the two-week lows. However, so far, the break above $6,400 has remained elusive, likely due to anemic trading volumes.
bitcoin’s total trading volume across all cryptocurrency exchanges fell to $2.92 billion on Saturday, the lowest level since November 7, according to .
The drop in the trading volume likely indicates the bargain hunters are not particularly impressed by BTC’s reversal from the two-week low of $6,080 (hit on Thursday) and also puts a question mark on the BTC’s ability to hold above the key support of $6,000 (psychological support).
At press time, the leading cryptocurrency is trading largely unchanged on the day around $6,360 on Bitfinex. Meanwhile, the 24-hour trading volume has improved slightly to $3.5 billion, according to .
Daily chart
The above shows the Bollinger Bands (standard deviation of +2,-2 on 20-day moving average) are flatlined, meaning BTC lacks a clear bias.
A close (as per UTC) above the 20-day MA, currently located at $6,400 would open the doors for completion of the target, i.e. BTC could rally to $6,838 (inverse head-and-shoulders neckline resistance). However, BTC will likely have a tough time holding on to gains above 20-day MA if the trading volume remains weak.
Interestingly, the upper Bollinger Band is also located at $6,838, so the level will likely act as a stiff resistance in the near-term.
4-hour chart
The relative strength index (RSI) is biased toward the bulls, so there is scope for a move above 20-day MA. However, a break below $6,240 (rising trendline support) would complicate the matters.
View
- Low trading volumes are complicating bitcoin price recovery.
- A close (as per UTC) above the 20-day MA of $6,400 would allow a rally to $6,838 (inverse head-and-shoulders neckline + upper Bollinger Band).
- On the downside, a break below $6,000 (February low) would shift risk in favor of a drop to $5,755 (June 24 low).
Disclosure: The author holds no cryptocurrency assets at the time of writing.
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Published at Mon, 16 Jul 2018 09:00:26 +0000
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