Bitcoin Volume Crashes 27% As Price Falls, What Does This Say About The Decline?
Bitcoin trading volume experiences severe collapse initial price momentumfell about 27% and triggered a subsequent decline in the value of the pioneer cryptocurrency. The sharp drop in trading volume has caught the attention of market participants, and one cryptocurrency analyst is discussing the mechanics and significance of Bitcoin’s decline, and whether it signals a decline in Bitcoin prices. distribution or accumulation phase.
Bitcoin price drops, trading volume plummets 27%
data CoinMarketCap revealed that daily Bitcoin trading volume plummets 26.46%, pushing the value to $85.89 billion. The sharp drop in Bitcoin trading volume coincides with a broader correction in cryptocurrency prices.
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As of the time of writing, BTC price has retreated to $87,848 in the past 24 hours. Cryptocurrency was before Transaction price exceeds $90,000but recently fell by 2.87%. A sharp drop in trading volume usually indicates Reduced market interest Or lack of enthusiasm. However, this may not be the case for Bitcoin, as there is high market activity for the cryptocurrency due to the just-concluded US presidential election. donald trump wins.
A more likely reason for the decrease in volume could be market integrationBitcoin’s price may stabilize ahead of a potential breakout. Backing this up is crypto analyst ‘Personal Trader’ point out The market has entered a downward phase, and Bitcoin may enter its final phase correction period Before reaching the $100,000 milestone.
Falling BTC prices could signal entry into a distribution or accumulation phase
In view of the recent Bitcoin price drops and trading volume, a cryptocurrency analyst named “IonicXBT” has identified by discuss Understand the significance of this decline using two major trends manifested in the Bitcoin market cycle: the accumulation and distribution phases.
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this accumulation stage It’s smart money, including investors or institutions, that starts buy bitcoin. During this phase, prices tend to be lower or stabilize after falling. also, Bitcoin transaction volume increases During the same period buyers stepped in to push up prices. Additionally, each price increase tends to be accompanied by strong volume, indicating increasing buying pressure.
In contrast, the distribution stage is smart money Sell or distribute their Bitcoins. At this stage, the price may have peaked or be considered overvalued. Bitcoin’s trading volume increased while price fell, suggesting Intense selling pressure. Additionally, price spikes accompanied by low trading volume suggest weak buying interest, which is a red flag that smart money is exiting the market.
Based on these Bitcoin phases, IonicXBT revealed that he will call Bitcoin market tops and bottoms soon. The analyst said that Bitcoin is not yet in the distribution phase, which means it is still a “buyer’s market,” indicating the potential for future price increases.
Featured image created using Dall.E, chart from Tradingview.com
