Bitcoin price dropped further today to trade around $250 on most times of the day. The price touched values around the $230 support level earlier today could be considered a low of the current bearish trend line.
By studying the 2 hour BTCE (BTC/USD) charts from tradingview.com, we can notice that the price was trading sideways as the price continues to come close to the $230 support level (look at the below chart). Today’s trading volume is apparently lower than yesterday’s which reflects cautious trading strategies of most traders. The long downward shadows of candlesticks on the 2 hourly charts could mean that bitcoin is oversold at this point and the $230 level is supporting the price well.
By analyzing the 1 day BTCE (BTC/USD) charts from tradingview.com and plotting the On-Balance Volume (OBV) (look at the below chart), we can notice that the OBV curve is now sloping downwards. We are expecting the OBV curve to start sloping upwards again, which means an increase in the buying volume, before we can see a rise in bitcoin price.
It seems that the bears are now more in control of the price of bitcoin. Indecisiveness of the market has led to a decline in today’s trading volume. Our analysis of the 1 day charts is still in favor of reversal of this bearish trend soon.
Charts from BTCE