The bearish nature of Bitcoin has continued steadily for a while now, and there are speculations that it might not change soon. Its value has remained practically stable for almost two weeks now, resting between the range of $6,400 and $6,600, and is already showing signs of struggling to retain its daily trading volume across major crypto exchanges.
According to Coinmarketcap, the volume of Bitcoin has waned by almost a billion dollar in the past 48 hours, with its estimated volume dropping from $4 billion to $3.5 billion. While on CoinCap.io, which is the market data provider for the familiar ShapeShift exchange, its market volume has dropped from $2.6 billion to $2.2 billion. The past two days have seen the popular cryptocurrency lose about 20 to 30 percent of its volume.
It’s Not All Dark and Gloomy
With the current discouraging trend, investors and traders might be tempted to rule out a sudden surge or boost in the cryptomarket; but Don Alt, a well-known crypto trader, believes optimism should not be left to hang out in the cold just yet. Although he reiterated that Bitcoin was still more likely to continue with its bear, as the year draws to a close.
As a matter of fact, if the present low volume of Bitcoin is considered along with its feeble $6,500 support, and glaring technical indicators that continue to bore through its price curve, it is highly possible for BTC to have a venial decline throughout the remaining months of this year. However, as Don Alt advised, the familiar volatility of the crypto market still leaves room for the possibility of a significant breakout.
CryptoYoda, another widely recognized analyst has advised traders from taking long positions on the BTC, warning that it might be too early, and much of a risk. He explained:
“Early entry long BTC in anticipation of trendline break and leaving $6,000 area for good as support has proven to be respected. Two higher lows, proximity of important trendline and triggered bullish outside bar in favor of positive advance. Risky trade as early, worth the risk in my opinion.”
It is important to note that the BTC has a peculiar history of breaking into a feverish surge after a period of decline in volume, with almost the same scenario repeating itself in 2012, 2014, and 2016.
Nonetheless, it is expected that stability continues for the next few months to come if the volume of the market fails to rebound in a day or two.