Home / Crypto Currency / Bitcoin Volume Approaches Yearly Low Again as Market Deletes $6 Billion

Bitcoin Volume Approaches Yearly Low Again as Market Deletes $6 Billion

bitcoin price


Over the past 48 hours, the volume of Bitcoin (BTC) has fell substantially from over $5 billion to $3.8 billion, and is quickly moving to its yearly low.

On CoinCap.io, ShapeShift’s official cryptocurrency market data provider, the volume of Bitcoin remains at around $2.54 billion. If the volume of BTC drops by around 15 percent in the days to come, then a new yearly low could be reached.

The low volume of Bitcoin is a concerning indicator for the short-term trend of the market because since early August, BTC has shown a high level of stability supported with low daily trading activity.

Bitcoin Needs to Begin Showing Strength

As cryptocurrency investor Roy Blackstone recently explained, Bitcoin has to begin showing strength in terms of volume, price trend, momentum, and daily trading activity in order for the rest of the market to remain afloat, above key support levels.

“It’s not alt 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.”

With Bitcoin demonstrating yearly low volumes on a regular basis, the cryptocurrency exchange market is not in a viable position to see a sudden increase in demand from speculators and retail traders.

Many traders, especially in the cryptocurrency exchange market, often attempt to purchase digital assets that are significantly down from their all-time highs to catch a large upside break. However, it only works if an asset breaks a long-term descending trendline with strong volume and a promising short-term rally.

While BTC had briefly broke out of a descending trendline dating back to January last week, the breakout was short-lived and from its monthly high of $6,700, BTC declined back to $6,400.

The lack of momentum in Bitcoin has led tokens and small market cap cryptocurrencies to struggle. Rchain, GXChain, MOAC, WanChain, Nano, Loopring, ICON, 0x, Tezos, and several other tokens demonstrated a 5 to 10 percent decline in value against both the US dollar and BTC.

Several analysts offered contrasting opinions, including a technical analyst known as CryptoYoda, who emphasized that the dominance index of BTC suggests an influx of capital into tokens is imminent.

“BTC Dominance 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 in favor of a move down. Close below 50% would confirm altseason.”

Where Market Goes Next

Since achieving $6,700 earlier this week, the crypto market has been stagnant. The volume of Bitcoin has consistently declined, momentum of tokens has faded, and trading activity in the cryptocurrency exchange market dropped.

Generally, the sentiment around the mid-term growth of the cryptocurrency sector is still positive due to the progress made by major financial institutions such as Goldman Sachs to strengthen the infrastructure of the market.

On October 18, Goldman Sachs invested in cryptocurrency custody provider BitGo, reaffirming its interest in serving the digital asset market and institutional investors within it.

Featured Image from Shutterstock. Charts from TradingView.

Follow us on Telegram or subscribe to our newsletter here.
Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.
Read more

Check Also

Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.