Bitcoin (BTC) price recently dropped from $ 6,800 to almost $ 6,000. However, despite the depreciation, BTC shows deeper withdrawal symptoms.
These three important indicators suggest that there may be larger losses for Bitcoin: a significant drop in the volume of CME Bitcoin futures, a noticeable drop in spot market volume and a very easy break of a strong support level at $ 6,400.
Before the minor correction, leading cryptocurrency technical analyst Cred said that the Bitcoin price has retested weekly resistance. Historically, when Bitcoin price has tested a significant resistance level with low volume and unavailable purchase demand, it usually makes big drops.
Retesting weekly resistance.
Daily market structure is bullish but i) weekly close was bearish; and ii) no daily close above resistance ($ 6900) yet.
My bias is bearish until at least> $ 6900 (daily) but if resistance breaks a teleport is more likely than a pullback. pic.twitter.com/sguxo8g6ux
– Cred (@CryptoCred) March 27, 2020
Combined with a 90 percent withdrawal in the volume of the CME Bitcoin futures market, Bitcoin’s overwhelming price trend could allow the selling pressure in the market to increase to suppress the Bitcoin price.
According to Skew data, the total daily volume of the CME Bitcoin futures market fell from $ 595 million to $ 101 million in mid-March.
Spot exchanges also show a similar trend that triggered FOMO among investors in the cryptocurrency market, possibly due to the sudden drop in the price of Bitcoin on March 12.
Lack of purchase orders and volume at a time when miners can sell more BTC to cover expenses in the short term can only increase sales pressure on the market.
The order book of the Bitcoin futures contract in BitMEX shows a huge imbalance between buyers and sellers, and sellers clearly provide tight control over the market. In short, the big imbalances between buyers and sellers in Bitmex make it hard to break the $ 7,000.
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