Market Overview

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

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, 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. 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.

Bitcoin Volume Approaches Yearly Low Again as Market Deletes $6 Billion, CCN, Oct 19
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