Bitcoin Hits Lowest Trading Volume of 2018
However, the $6,000 support level offers some optimism for traders.
Speculations As Bitcoin Hits Low Trading Volume
A review of the cryptocurrency market in the past day shows that Bitcoin has hit a new low in trading volume for this year. At the moment, Bitcoin is valued at above $6,000.
Data provided by Coinmarketcap shows that Bitcoin’s trading volume plunged to $3.1 billion. Data by CoinCap shows that it dropped to $1.9 billion.
Experts speculate that the drop in volume might have been affected by the decline in trading activity registered on Sunday. As a result, bitcoin’s short-term dominance might be negatively impacted.
According to prominent market analyst Carpe Noctem, bitcoin could hit the $7,000 mark in the coming days if it rallies past the $6,800 mark. He stated that bitcoin can hit this figure with the current trading volume. He added that bitcoin can bank on the last 60 days where it witnessed some stability.
For the last three months, bitcoin has been hovering in the $6,300 to $6,700 range. This is the highest level of stability witnessed this year.
Other market analysts believe that the decline in exchange activity for cryptos might be a result of investors not sure about the market. We have a cloud of uncertainty among many investors, something that has affected a majority of cryptos. A majority of traders are keenly waiting for a breakout in both directions. This will establish the temporary price direction.
A review of bitcoin’s history shows that the crypto usually makes some recovery on Monday in the event the weekend witnesses low trading volumes. Normally, OTC markets usually open shop on Mondays and close towards the weekend.
There is some hope considering that top coins like BTC and ETH have held on to support their bases within the last few days. This is a positive sign for the crypto sector in general.
The largest digital currency has held onto the $6,000 mark. Bitcoin has made it a base it might use to start a major rally from in the coming days.
According to trader Alex Saunders, the $6,000 mark is boring but investors should be excited. He stated that it is a strong base that will lead to a large launch.