The volume of Bitcoin traded in exchanges is down to $3.8 billion from $5 billion as the market seems to stall. Bitcoin again went down below $6,500 as the coin was unable to bridge the $6,800 resistance that many analysts feel would herald a short-term bullishness.
According to data from CoinCap.oi,the main Shapeshift’s market data provider, bitcoin volume is 15 percent shy of its yearly low. The next few days would be the determinant if the coin would trade at yearly low.
Analysts have always used Bitcoin trading volume as a determinant of its trend and in any case, high trade volume is looked at as impacting stability. While low trading activities could indicate uncertainty in the market.
Bitcoin is currently trading at $6,442 according to data from Coinmarketcap. The coin is down 1.42 percent in the past 24 hours. The recent losses is reflective of the altcoin market, as all the top coins are in red.
At the time of reporting the coin is trading volume of $3.7 billion. Market watchers are of the view that for the coin market to gain traction, Bitcoin has to have a more positive outlook in terms of volume, momentum and daily trading activities.
Roy Blackstone echoed that belief by saying,
“It’s not altcoin season until: ‘long term investors’ sell at breakeven, media hype machine starts, your best friend is getting rich off crypto, alt pumps across the board on exchanges like polo, Bitcoin starts to show real strength.”
The reason is that the movement of the general coin market is inseparable from Bitcoin trend. Analysts already bemoan the trend and lack of traction at a time the market is expected to commence short term rally.
The indecision and uncertainty in the trend can be evinced from the contrasting views of analysts. CryptoYoda stated that,
“BTC Dominance is indicating top might have been reached. In previous cases, similar structures led to strong selloffs, meaning capital flowing out of btc into alts. Both context and altitude are in favor of a downward movement. Close below 50% would confirm altseason.”
It is still uncertain at the scope of the anticipated selloff if the bears are right. What is certain is that most coin enthusiasts still view Bitcoin as a long term asset.
Trading View Wave Trader stated that,
“Bitcoin is setting up for breakout. We are about to see breakout on the BTC/USD trading pair . If we see breakup then look for long.”
This echoed traditional sentiment of hodlers. The analysis continued by stating that,
“If we are going to see breakdown then one more short term bearish leg and then longer term buy”.
The market price of Bitcoin saw some positive movements last week as signals from institutional investment created some excitements in the market. The present lull is indicative of the uncertainty around the traditionally volatile industry.