Bitcoin went through another volatile session after falling below a major support, sparking a new debate across the market. Analysts pointed to fresh pressure from heavy trading volume, oversold signals and ETF outflows. $BTC After a sharp decline, it attempted to stabilize.
With just a few hours left in the session, Bitcoin had already hit its highest volume in more than a month, according to Scott Melker. His chart shows a green daily candle forming near the low, suggesting that some of the large trades were due to buyer intervention during the decline.
Volume returns as price tests lows
Melker said Bitcoin was near historical oversold levels after the recent selloff. His chart showed $BTC It has lost momentum from its recent trading range and is well below its short-term moving average.
The chart also showed strong volume bars during this move. This is important because Bitcoin’s early candlesticks had low activity, while the latest session saw a clear increase in the number of participants. Melker said that at the time of writing, the candle color was green, meaning buyers were active even after the decline.
Source:X
He also said there is a bullish divergence in the lower timeframes. In the structure of a market, this happens when prices continue to fall while momentum starts to improve. While this does not confirm a complete recovery, it could indicate that selling pressure is slowing.
Fear also remained high. Melker said there are still several hours left in the session, but hysteria and fear are at their peak. As such, the market is in a sensitive zone, where follow-through buying or further rejection could determine the next move.
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Fear reaches peak as Bitcoin rebounds
Melker said hysteria and fear are at a peak and the graphs reflect that pressure. Bitcoin has fallen rapidly from its previous consolidation zone, creating a large gap between the current price and the moving average area mentioned above.
The decline has put traders in a difficult position. On the other hand, the broader structure still appears vulnerable after the rapid collapse. On the other hand, a sudden increase in trading volume indicates that buyers are starting to react at lower levels.
Coin Edition also reported new market pressures on Strategy’s recent 32 deals. $BTC The sale was valued at approximately $2.5 million. The report noted that ETF outflows and technical vulnerabilities are adding stress to Bitcoin’s near-term setup.
These details add context, but the chart is still the main signal. Bitcoin requires follow-through after large sessions. Without that, green candlesticks may only indicate a temporary pause in a broader decline.
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Cycle view keeps traders in check
Cole Walmsley framed this movement through Bitcoin’s repeated cyclical behavior. He said Bitcoin often experiences a moment every four years when the market believes the asset is finished, after repeated selling pressures, before the price recovers.
This view does not eliminate current weaknesses. Instead, it places the sell within a pattern that traders have observed in previous cycles.
Meanwhile, Bitcoin’s short-term direction depends on buyers being able to defend the latest lows and build from a large number of candlesticks. A stronger rebound requires the price to recover the levels lost during the breakdown and move back towards the moving average zone.
Bitcoin’s next move will depend on whether large purchases can continue after the initial reaction. A recovery above the lost support will ease the pressure, but another failure to rebound will keep the market focused on the lower zone and ETF flow data.
