Over the last 24 hours, the volume of Bitcoin has increased by yet another 10 percent from $3.5 billion to around $3.8 billion.
On October 28, the volume of Bitcoin increased by around 20 percent from $3.1 billion to $3.5 billion, showing strong and sustainable momentum in the lower region of $6,000 for the first time since mid-September.
As cryptocurrency investor and technical analyst Hsaka recently stated, the volume of Bitcoin has declined to the October 2017 level.
Trading activity in the cryptocurrency exchange market has subsided due to the stagnant price movement of major cryptocurrencies. The decline in momentum of Bitcoin, Ethereum, Ripple, Bitcoin Cash, and EOS have affected the performance of small market cap tokens and digital assets.
But, in October, a drop in daily trading volume and a stagnant few months led to a short-term surge in price for Bitcoin, Ethereum, and other major cryptocurrencies, allowing the market to achieve a valuation of $800 billion.
Since August 9, the price of Bitcoin failed to escape a tight range from $6,300 to $6,600 apart from one occasion in mid-September, and an increase in volatility in the weeks to come could enable the market to achieve positive sentiment prior to the end of 2018.
“If you squint hard enough, you can see the $BTC weekly candle. $85 spread between the high and low of the week (as of now). Last time we had lesser volume than this was Oct ’17. Hopefully we see some semblance of volatility into the weekly close,” Hsaka wrote.
DonAlt, a cryptocurrency trader, stated that in the days to come, Bitcoin will likely retest $6,200, as it fell below its support level at $6,400.
“Finally a movement. And as I guessed right as I’m about to leave for vacation, as always. Looking for a daily close at the edge of the green zone. Intraday a retest of 6200 still very possible.”
Heavily impacted by the two percent drop in the price of BTC over the past three hours, Bitcoin Cash (BCH), Ripple (XRP), and Ethereum (ETH) declined by more than 4 percent, recording a steep decline for the first time since early October.
BCH and EOS recorded a more intense drop in comparison to other major cryptocurrencies, as the two assets often reflect the movement of small cryptocurrencies and tokens during a market downtrend.
While the state of the market depends on the speed of the recovery of BTC, analysts generally believe that the crypto market will initiate a fast corrective rally in the days to come, particularly because the sell-off of major assets were triggered without a large spike in volume.
The sell-pressure on most digital assets remain less intense than in August and September, which could allow the market to rebound relatively quickly in the short-term.
Featured Image from Shutterstock. Charts from TradingView.
Last modified: May 20, 2020 2:33 PM UTC