Bitcoin has returned below the $4000 mark on most exchanges after bullish movements which brought the price to an intraday high around $4400 yesterday. Yesterday’s daily candle formed a Doji. A Doji is a candle where the open is around the same point as the close and typically shows indecision from traders. Traders were likely cautious to take long positions after the extremely bearish movements we had been seeing recently.

Altcoins are following the market leader Bitcoin today with the vast majority recording significant losses. A close below $4000 would likely be a bearish sign for the markets and may spark another sharp sell-off. The one bullish factor to be noted today is that the drop is not taking place on large amounts of volume which could indicate that traders are unsure of this drop and may drive the price back up from here. Support does seem to be coming into play at $4000. Price dropped to approximately $3870 but has since started to retrace back up.

Bitcoin Daily Chart – Source: Tradingview.com

The hourly chart shows the price drop in closer detail. The price was trading around the hourly 50 EMA around $4150. It then proceeded to drop to its intraday low over the space of just a few hours and subsequently begin to bounce back up. The bounce is on significant volume and has a strong possibility of bringing the price back above $4000.

Bitcoin Hourly Chart – Source: Tradingview.com

Key Takeaways:

  • Markets return to bearish conditions as market leader Bitcoin returns back below $4000.
  • Yesterday’s candle formed a Doji reflecting the uncertainty from traders. Traders were likely considering the possibility of a bearish movement like the one being seen today.
  • An intraday low formed around $3870 but price bounced from this point. Today’s drop is on lower amounts of volume, and there is a strong possibility that traders may drive the price back up above $4000 from here.
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