Overstretched? Bitcoin Price on Shaky Ground After 1,000% Gains

Bitcoin may be starting to show signs of bull market exhaustion.

As per CoinDesk’s Bitcoin Price Index (BPI), bitcoin (BTC) rose to a new all-time high of $10,831.75 at 05:35 UTC. Prices moved above $10,000 in Asian trading hours. As of writing, BTC is at $10,900. The meteoric rise has taken year-to-date gains to 1,000 percent.

Still, there is a need to be cautious, the latest price and volume activity suggests.

The above chart shows:

  • A high volume price drop to near $10,000 as represented by the big bearish engulfing.
  • Volumes fell as the price recovered to $10,800 from the engulfing candle low.

A bearish engulfing candle is characterized by a bearish candle, whose body – the open and close –swallows up the previous candle’s body. On the chart above the big red candle has enveloped the body of the previous two 1-hour candles…

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