Over the past 24 hours, Bitcoin has achieved a new yearly low volume, demonstrating a lack of momentum and strength to recover to the higher region of $6,000.
On Coinmarketcap, the volume of Bitcoin fell to $3.1 billion while it fell to $1.91 billion on CoinCap. The previous yearly low point of the Bitcoin volume was $3.2 billion on Coinmarketcap and $2 billion on CoinCap.
The low volume of Bitcoin, possibly affected by a decline in trading activity on a Sunday, could have a negative impact on the short-term trend of the dominant cryptocurrency.
Not so Fast
Carpe Noctom, a respected cryptocurrency trader and technical analyst, stated that if BTC can close above the $6,800 mark in the days to come regardless of the low volume, a breakout above the $7,000 mark is still a possibility.
“Candle close above 6800-7100 and we got ourselves and ol’ fashion bull trend,” he said, emphasizing the two-month stability period BTC has experienced since August 9.
Apart from two short-term price movements, the price of BTC has been in the range of $6,300 to $6,700 for nearly three months, demonstrating its highest level of stability in recent months.
Generally, technical analysts have stated that the low trading activity in the cryptocurrency exchange market can be attributed to the concerns of investors in the uncertainty in the market. A fairly large portion of traders in the market are waiting for a move to breakout, either on the downside or upside, to confirm a short-term price movement.
BTC has not been able to record any major movement since early August.
Historically, BTC has tended to demonstrate minor recovery on Mondays, following two low volume days throughout the weekend. Over-the-counter (OTC) markets typically open in the beginning of the weak and close its operations prior to the weekend.
One positive component in the mid-term trend of the cryptocurrency market is that major digital assets including Bitcoin and Ethereum have held and maintained support levels relatively well in the past several months.
Bitcoin in particular has defended the $6,000 support level with ease since mid-2018, building a foundation that could enable the asset to initiate a strong short-term rally in the near future.
“The longer #Bitcoin remains ‘boring’ above $6k, the more excited you should be for the next bull run. Stronger the base, larger the launch,” cryptocurrency investor Alex Saunders said.
State of Tokens
Tokens have started to demonstrate decent gains against both BTC and the US dollar, which often occurs in a sideways market.
Augur, Decentraland, Golem, and Qtum have recorded gains in the range of 5 to 10 percent, as the price of BTC has maintained stability in the $6,400 to $6,500 range.
On October 21, a large amount of Tether (USDT) and other stablecoins were moved to various exchanges, which could have been allocated to tokens.
Last modified: March 4, 2021 3:50 PM