Let’s Take a Look at Bitcoins

On the weekends, the markets are closed and nobody trades right? Right, unless it’s bitcoins! It’s traded 24/7 on various online exchanges, such as poloniex.com or kraken.com.

So, how does BTC/USD (bitcoin versus US dollar) look like? On the daily timeframe, the rally from $440 was stopped on heavy distribution, reaching nearly $779 per Bitcoin on its peak. A downtrend ensued, and what caught my attention, was the recent selling climax on a really high volume – a lot of big buy orders were executed here, which made the wide bar close off its lows, and the volume fire up. The market was sustained right after, and it’s now breaking the high of a no supply yesterday.

 

Bitcoin Market Analysis

Bitcoin Market Analysis

 

An advantage of trading bitcoins, is that you also get access DOM (depth of market), or order book, usually only accessible in standard financial markets by paying a hefty sum every month. Here we see that lower prices have buy orders in a much higher volume than higher prices have sell orders:

 

Bitcoin Depth of Market

Bitcoin Depth of Market

This is more bullish evidence to me, at least on the daily timeframe, where this selling climax, and order book imbalance, will have more meaning.