Bitcoin Trading Volume Plunges To Lowest Level Since 2020
The Bitcoin Trading Volume has plunged down to the lowest level since 2020, as per an Arcane Research report.
BTC Trading Volume Plunges To Lowest Since December 2020
According to an Arcane Research report, the Bitcoin trading volume has seen a new daily low this weekend. The indicator had already plunged a week ago, but activity on exchanges has fallen even further now.
Below is a chart showing how the BTC daily trading volume has changed since June of last year:
The Bitcoin trading volume seems to be falling even further | Source: Arcane Research
As is clear from the chart, the 7-day average BTC daily trading volume has dipped to a new low for the year at about $2.2 billion.
A notable feature of the graph is that the value of the indicator right now is the same as what it was on 14 December 2020. The 2021 bull run started soon after this date where Bitcoin broke its all time high (ATH) from back in 2017.
The BTC market volatility is also down to the lowest it has been in the year 2021 so far, likely caused by the stagnation in the price of the cryptocurrency.
Incidentally, the summer of 2020 also saw low activity on top Bitcoin spot exchanges and low market volatility. This summer might turn out to be similar.
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As of the time of publishing, the price of BTC floats around $32.8k, down around 3% in the last 7 days. If examining over the past month instead, the crypto’s value seems to be down more than 12%.
Here is a chart showing the trend in Bitcoin’s price over the last 6 months:
BTC seems to be going down once again | Source: BTCUSD on TradingView
Over the past few weeks, the Bitcoin market has been stuck in a range bound environment, and the price of the crypto has barely moved because of that. It fell off once below the $30k support line, but was quickly pumped back up to the $35k resistance level.
As things stand, the return on investment for the year 2021 has been nearly wiped out because of the 50% crash suffered by BTC in May.
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It’s unclear when Bitcoin will be able to escape this $30k-$35k stagnation zone, and which direction it will go in. The $35k resistance level is proving to be tough to break.
According to some experts, if the $30k support level turns into resistance, there could be a short-term bear market ahead with price falling to as low as $17k. Long-term, however, there could still very well be a bullish trend.
Featured image from Pexels, charts from Arcane Research, TradingView