As per Technical Analysis Bitcoin may soon extend Wednesday’s price pullback, there’s increased selling pressure in the market.
While the top cryptocurrency by market value fell by 4% , it defended the long-held support zone of $11,100–$11,200.
Exchange platforms witnessed an inflow of 92,000 BTC , the biggest-single day rise in 37 days.
"Inflows surged as people rushed to sell at near $12,000.
The selling pressure (arising from the exchange buildup of 92,000 BTC) has probably not been fully absorbed yet.
That's because bitcoin's median trade intensity, which measures the number of times an inflowing coin is traded, remained low at 3.113, well below the 180-day average.
Put simply, there were not enough buyers to match sellers.
As such, coins that weren't liquidated yesterday could still be offloaded into the market in the short run, causing a more profound price decline.
I think there is still sell pressure to work through, Bitcoin is currently trading near $11,300, representing a 0.7% decline on the day. A violation at immediate support at $11,170 would confirm a bearish reversal pattern on the technical charts.