BTC encounterd selling super-pressure above the record of $40k
There are two lines drawn on the chart - $30,000 and $40,000 per coin. Note the Shakeout. This huge volume with the price closing far from the lows of the bar is bullish in nature because the bar aims to kick out as many bitcoin holders as possible. Therefore, we could well expect the price to further push back from the $30,000 level and resume rising, as the green arrow shows.
But near the $40,000 level, we see a change in market behavior. Step by step, signals appear on the chart that tell us that demand is depleting and supply is taking control.
EVRT1 - What does this huge volume mean without a significant price increase? If this volume meant the strong demand activity, we would have seen a close well above 40,000. But none of that has happened.
EVRT2 - Again we see volume well above average. But what progress in price advance? Absolutely none. Sellers are holding back the pressure of buyers.
The red circle shows an area of weak demand. Why? The blue arrow is an attempt by buyers to launch a new attack and hold above the 40,000 level. But the low volumes around the red circle tell us that the low number of trades is due to the fact that no one wants to pay that much for Bitcoin.
As a consequence, we get a downward bar. And very, very importantly, we have volume growth on that bar. That means that bears have started selling at market prices in order to push the price below the 40,000 level.
The expectation is further negative in the short term, as the high supply that appeared near above the 40,000 level is unlikely to just dissolve. The big players have chosen it as a profit-taking level. Fix profits too
But near the $40,000 level, we see a change in market behavior. Step by step, signals appear on the chart that tell us that demand is depleting and supply is taking control.
EVRT1 - What does this huge volume mean without a significant price increase? If this volume meant the strong demand activity, we would have seen a close well above 40,000. But none of that has happened.
EVRT2 - Again we see volume well above average. But what progress in price advance? Absolutely none. Sellers are holding back the pressure of buyers.
The red circle shows an area of weak demand. Why? The blue arrow is an attempt by buyers to launch a new attack and hold above the 40,000 level. But the low volumes around the red circle tell us that the low number of trades is due to the fact that no one wants to pay that much for Bitcoin.
As a consequence, we get a downward bar. And very, very importantly, we have volume growth on that bar. That means that bears have started selling at market prices in order to push the price below the 40,000 level.
The expectation is further negative in the short term, as the high supply that appeared near above the 40,000 level is unlikely to just dissolve. The big players have chosen it as a profit-taking level. Fix profits too