After a massive 14% crash in the Bitcoin price, Bitcoin has finally found support at the $10,500 key support region. This region is very important to the future of Bitcoin and can help us in predicting the direction the Bitcoin price might take in the coming days.
A price bounce off of the $10,500 key support could see Bitcoin becoming very bullish again for the short term. However, if the price breaks and closes below that $10,500 support, it could mean that we might see more weakness and price decline in the Bitcoin price in the coming days.
But the big question Bitcoin traders are asking is “what direction as the highest probability of playing out?” And in this Bitcoin analysis, we will be taking a look at a few technical developments on the Bitcoin chart that points to a more bearish weakness for Bitcoin.
Bearish Volume Is Still Very High
The volume indicator has been a key technical indicator for gauging the market sentiment for the Bitcoin price, and right now, that sentiment is still flashing a bright red warning sign.
We can also see the bullish volume is not increasing, indicating traders are not yet willing to buy Bitcoin at this current price.
If that bearish volume continues to increase in the coming days, it simply tells us that Bitcoin traders are still very bearish on the Bitcoin price and we can expect more dump in the price.
Bitcoin Is Still Under A Very Key Resistance
Another key technical indicator pointing to a more bearish outlook on Bitcoin is the $11,104 horizontal support region. As far as the Bitcoin price remains below this region, there is a very high probability the Bitcoin price will remain bearish.
However, for Bitcoin to break through that $11,104 resistance region, we will first have to see more buyers come back into the market. But right now, that is not happening.
The Bitcoin Dominance Is Crashing Hard!
Bitcoin Dominance is also an important indicator used by a lot of advanced traders for gauging the sentiment of the Bitcoin market for both long term investors and short term traders alike in the Bitcoin industry.
How it works is it gives us a way to track the flow of funds into and out of the Bitcoin market. Bitcoin Dominance
The lower the Bitcoin Dominance, the more outflow of funds and investors from the Bitcoin market. This also translates to weaker Bitcoin prices and a potential down-trending market.
As at the time of writing this Bitcoin analysis, that dominance is at a record low of 56.44% falling from its previous highs of 61%.
This clearly points to a massive exodus of investors from Bitcoin and we can expect the bearish to continue in the short term until this massive investor exodus is reversed.
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