Last week, we saw a violent move to the upside as bitcoin rallied 11% over the course of one day. Since peaking in the upper $3,600s, bitcoin has seen close to zero bullish follow-through, and the price has begun to drift downward over the course of the last week:

Figure 1: BTC-USD, Hourly Candles, Downward Drift

Downward-drifting markets like this can often be a sign that distribution is taking place. It represents an overall lack of bullish pressure. And, from the volume profile, we can see that selling pressure has remained constant throughout the week of downward drift:

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Figure 2: BTC-USD, Hourly Candles, Sustained Selling Pressure

We can see in the figure above that every attempt by the bulls to push the price upward was quickly and easily countered by bearish pressure. The highs are getting lower, and the lows are getting…

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