If you’ve been following the Bitcoin market over the past 30 minutes, you’ve likely noticed the odd bout of price action depicted below — Bitcoin spiked 1% in a few minutes to only crash by 3% in three minutes, then continue lower and lower as if there was no support under BTC.
Bitcoin Could Continue Lower, Darth Maul Candle Suggests
Commenting on the extreme price action — which some have chalked up to the low liquidity on the weekends and the existence of margin trading — trader Byzantine General expressed bearishness. He wrote in a message published that when the brief surge to $9,200 took place, it was on “high volume,” implying the subsequent failure and reversal was a bearish sign. Explaining the concept further, Byzantine General said:“When darth mauls go up first, then down, they are usually bearish and continue to bleed.”Trader Coiner-Yadox also expressed bearishness amidst the Darth Maul candle. He explained that from how he saw it, there was a clear confluence of resistance around $9,300 — the descending trendline, February open, a pool of liquidity, a four-hour supporter, and a daily breaker — suggesting that any move into that region would be begging for a reversal.
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