Bitcoin is currently showing signs of weakness. After a buying climax (BCLX) at the 2933 level prices quickly retreated into an automatic reaction (AR) on heavy down volume. We can see weakness starting at the climax as the up volume is very large and Bitcoin is unable to maintain above this price level. Large effort with little reward. This suggests that large sellers (Supply) is present at these high prices. Rallies towards 2933 and thereafter have been on declining volume, a further sign of weakness. Looking on the wave volume shown at the bottom of the chart we can see that cumulative buying has been decreasing on the rallies providing more evidence that demand is slowing at these price levels. Cumulative selling is increasing on the down waves. In other words buying pressure is slowing down.
I believe this rally in Bitcoin will stop short of the BCLX and fall back towards support. Bitcoin should consolidate from there and I will do further analysis to determine if price will breakout to the upside taking it north of 3000 or if there will be a larger decline towards the 2000 level. Lets see if it unfolds.
Stay tuned for more updates!