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BTC Faces Heavy Selling as 400% Volume Spike Hints at Deeper Correction

BTC Faces Heavy Selling as 400% Volume Spike Hints at Deeper Correction. Source: Image by Roy Buri from Pixabay

Bitcoin (BTC) is under heavy selling pressure after a dramatic 400% spike in trading volume signaled possible structural weakness and heightened volatility. The leading cryptocurrency recently rallied toward $122,000, breaking out of a prolonged consolidation phase and forming a bullish pattern. However, the momentum stalled near local highs, triggering an abrupt rejection and steep decline.

As of now, Bitcoin trades around $115,700, down over 5% from its recent peak. The price has slipped below its rising support trendline, raising concerns about further downside. Although BTC remains slightly above its 50-day Exponential Moving Average (EMA) at $114,945, the significant volume increase during the sell-off points to distribution rather than healthy buying activity.

The Relative Strength Index (RSI) currently stands at 52.80, trending lower and reflecting weakening market momentum. Analysts warn that while high trading volume during an uptrend confirms strength, a similar surge during a correction often signals forced liquidations or panic selling.

In the near term, Bitcoin could test key support zones at the 100-day EMA ($110,385) or even the 200-day EMA ($106,211) without jeopardizing the broader bullish market structure. However, short-term sentiment remains fragile until buyers step back in and BTC reclaims the broken trendline.

Market participants are advised to stay cautious as the current volume-driven breakdown may precede additional volatility before any potential recovery rally.

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Great article. Requesting a follow-up. Excellent analysis.

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Great article. Requesting a follow-up. Excellent analysis.
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