BTC’s Breaking Below The Support Point At $9542 May Usher In Further Drop
Generally speaking, the price peaking of Bitcoin (BTC) is often accompanied by a large number of change hands at high levels in the spot. The trend reversals occur during the movements done by main capitals. Therefore, BTC’s decline on Feb 10 may also be related to the selling carried out by main capitals. At around 05:50 UTC on Feb 10, BTC dived, with its amplitude reaching up to 2.94% within only 10 minutes, which is undoubtedly a considerable hit for contract traders.
At 05:41 on Feb 10, up to 15,000 BTC were transferred from an address starting with 1Bvd, with over $150 million involved. Coincidentally, BTC experienced a cliff-like drop of 2% only in 10 minutes after those coins were transferred out, and the trading volume rebounded sharply in a short period of time. At the meantime, the amount of unconfirmed transactions surged to a peak of 23 million. It can be inferred that the abnormal fluctuation of BTC may be driven by the transactions of main capitals.
In addition, it is worth noting that the number of Bitcoin held at the aforementioned address has always been very stable, and there has been no transfers since Feb 1, 2019, on which the BTC price was only $3,463.
The 4-hour chart shows that the unconfirmed transactions of BTC on Feb 6 did witness a significant increase. However, its price were also picking up. After the rapid fallback of BTC on Feb 10, unconfirmed transactions rose dramatically, which may be caused by investors who were eager to sell their coins. After a large number of BTC were changed hands, the closing price is continuing to fall, which is a dangerous signal for BTC to usher in its correction in the short run.
Until there is no greater decline, it is important to focus on the the support point at $9,542. Next, another point is $9,107. At that time, the corresponding RSI indicator hit a high of 81.54 on Jan 28. If the BTC price only corrects technically, the fading of RSI divergence is able to indicate the short-term bottom after BTC falls back to the above-mentioned $9,107.
Published at Tue, 11 Feb 2020 05:36:23 +0000
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