Bitcoin (BTC) and Ethereum (ETH) fell for a fourth straight day on May 9, ripping off some of their year-to-date gains of 66% and 53%, respectively, while several lesser-known alts The coin increased in trading volume and increased in price.
Bitcoin appears to be confined within a range with support levels near $27,500. Looking at the Visible Volume Profile (VRVP), there is a high level of trading activity between $28,000 and $27,400. It generally represents the range that has been agreed so far between buyers and sellers, so it represents the range where the price action may plateau.
The range of low activity levels between $26,700 and $25,000 is the range where prices can fall rapidly.
If it falls to the latter range, the following meaning can be read.
- The current support has broken below
- Bitcoin’s Bollinger Bands Lower Boundary Breaks, A Traditional Bearish Sign
- The next high activity level range on the downside is near $23,950.About 14% lower than the current price
Whether or not the Bollinger Bands widen will be a point to watch as it will indicate increased volatility, in this case downside risk. Bitcoin’s Bollinger Bands widened by 5% on the 3rd, after narrowing for seven days.
Ethereum’s Bollinger Bands have also narrowed over the last seven days, most recently narrowing by 3%. The reduction in volatility coincides with a high range of activity at $1,811, indicating the presence of short-term support for the Ethereum price.
Meanwhile, altcoins Litecoin (LTC) and Bitcoin Cash (BCH) are up more than 3% and 10%, respectively, over the last 24 hours. Trading volumes were also more than double their 20-day averages.
The trading volume of Cosmos (ATOM) and Filecoin (FIL) also surged. The move, which appears to be related to congestion on the Bitcoin and Ethereum blockchains, indicates that investors are turning their attention to altcoins.
Or it could simply represent a reversal in a market that fell sharply on the 8th.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Original: Bitcoin, Ether Slide for 4th Consecutive Day, While Altcoin Trading Volume Spikes