The price of Bitcoin is currently in consolidation within the lower $9,000 price level. This is the region where the cryptocurrency has been trading for the last day, as both the buyers and sellers reach a stalemate, pushing down the Bitcoin trading volume.
This consolidation has triggered a reduction in Bitcoin trading volume, which has been soaring high over a multiple week time frame. Additionally, it seems that the investors have become nervous as it’s getting increasingly unclear where the world’s largest cryptocurrency will go next, up or down?
Bitcoin trading volume declines as the crypto commences consolidation stage
Last week, Bitcoin suffered vast volatility that was triggered by the transfer of 50 BTCs from an account that has been dormant for over a decade. This price volatility happened when Bitcoin’s price was about $9,800, triggering a sharp decline to $8,800 lows. At this point, the buyers upped their game to regain the $9,000 price levels.
Notably, Bitcoin has formed a string of lower highs over the past couple of weeks, as it saw a number of harsh rejections at about $10,000, distracting its momentum. Its current dull price action has already made investors nervous and fearful, resulting in a decline in the Bitcoin trading volume.
Bitcoin traders have become fearful
A recent study carried out by Arcane Research concluded that BTC’s trading volume is diminishing after hitting this year’s high last week. The decline has conflicted with the occurrence of last week’s vast volatility, which seems to symbolize a shift of sentiment in the industry.
According to the study’s report, Bitcoin’s stalling price action has got the investors nervous. Per the Fear and Greed Index, market participants have become more fearful as Bitcoin fails to break past $10,000. If Bitcoin carries on with its price struggles in the coming days, investors will get even more worried and fearful.