Over the past several days Bitcoin (BTC) has been climbing steadily upward. The cryptocurrency heavyweight hit a 2020 high of $12,134.29 (according to Coinbase) very early morning eastern time on August 2. Back on July 27 Bitcoin firmly broke out of the $8,810 to $10,020 channel it had been holding since early June.
Almost immediately after hitting the new 2020 high around midnight EST, Bitcoin took a massive nosedive. In just 15 minutes it plummeted -8.05% down to the October 2019 high on 5.2k BTC volume. More than 9.1k BTC were traded in the hourlong run up and drawdown. This is very heavy volume. Average volume in the preceding and subsequent hours saw roughly 1k volume per hour on Coinbase.
In the hours that followed, it briefly clawed its way back above the $11,400 mark before sinking again. Within the last hour Bitcoin has bounced off the September 2019 high level twice, on the 15-minute chart.
As of this writing Bitcoin is trading at $11,060. Based on the order book positions and trend indicators, we anticipate a fall back toward the $10,500 range in the short term. We’re also looking for a return to the $9,500 to $10,200 range in the near future.