Bitcoin exchange activity is sluggish because retail is on the field – will the Bulls lose momentum?
Although Bitcoin (BTC) continues to trade near its all-time high (ATH), the volume of major trading volumes has dropped significantly in recent months. This downturn has raised concerns about the sustainability of the current rally.
Bitcoin trading volume on exchanges is sluggish
In a recent crypto quick post, contributor Cauecomanty highlighted a significant drop in BTC trading volume across advanced cryptocurrency exchanges. It is worth noting that trade volumes have reached years of lows, reflecting a decrease in demand for trading, especially among retail investors.
Analysts partly attributed the decline in trading volume to the growing share of spot Bitcoin exchange-traded funds (ETFs) in BTC trading activities. according to data Judging from Sosovalue, the US live ETF now holds about $132.5 billion worth of BTC.
Furthermore, Caueccomenony points out that the weakening interest in AltCoins is another contributing factor. This trend is evident in the decline in the Ethereum (ETH)/BTC ratio and subsequent growth in BTC dominance.
From a more constructive perspective, the continued decline in BTC trading volume seems to be inconsistent with a period of time The market is happy. This suggests that the current momentum is largely driven by strategic capital allocators rather than inexperienced speculators.
Analysts concluded that monitoring any spikes in transaction volume would be crucial, as new demand often marks the top approach in the local market. Currently, BTC is trading at about 6.4% lower, 6.4% lower.
In the current side price action, some analysts are still waiting for a clear breakthrough. For example, Titan, a well-known cryptocurrency analyst, identified $109,000 as a crucial resistance level. They said:
BTC A peak that exceeds the last lag span is needed to unlock further upward space. Since strong convergence support is still around $100,000, rejection won’t invalidate the trend. We are not there yet.
Similarly, crypto analyst Merlijn traders pointed out that BTC formed a bullish downturned head and shoulders pattern on the three-day chart with a neckline of about $113,000. A breakthrough above this level could pave the way for the new ATH to approach $140,000.
Some warning signs from BTC
Although many experts predict that BTC will benefit from rising global liquidity, especially Increase In the global M2 money supply – others are not optimistic. Experienced crypto analyst Ali Martinez warn Tom DeMark’s (TD) sequence indicator flashes the sell signal on the hourly BTC chart.
In addition, Binance has recently opened interest Record With BTC prices diverge, sending out a signal warning. Bitcoin RCV indicators are also available move Outside the “buy” area, concerns about price declines have been raised. At press time, BTC was trading at $104,292, down 3% in the past 24 hours.
Featured images from unsplash.com, charts from cryptoFuant, X and TradingView.com
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