Bitcoin had a great start to the year, but let’s admit it; the recent performance has not been living up to the expectations of holders. This gloomy market weather darkened a bit more when it was discovered that Bitcoin’s weekly volume had dropped by a massive 72 percent in 3 months on BitMEX.
The information came as a shock to many users in the community as they were hoping for good news as the price movement has been steady for the past week. The reason why the volume drop is significant is that it is the largest margin trading platform in the world, and any fluctuation in user behavior there would lead to larger ramifications.
At press time, Bitcoin was trading for $7953.09 after a fall in price made it fall below the $8000 threshold. The world’s largest cryptocurrency held a total market volume of $143.14 billion and a 24-hour trading volume of $14.79 billion, a far cry from its $20-$30 billion days.
AngeloBTC, a trader and investor, spoke about the ongoing predicament by tweeting:
“Patiently waiting for $6k $BTC levels where I will add to long-term holdings.
Good luck homies.”
Technical analysis of Bitcoin’s performance showed that other factors also indicated a bearish atmosphere. The Relative Strength Index was close to the oversold zone, which indicated that a lot of the holders were selling off their assets, expecting an adverse outcome of events.
The Chaikin Money Flow indicator was on the downtrend towards the zero line. This was a sign that the capital coming into the market was reducing as more of it left the market due to the FUD.
The most significant recent price drop occurred on September 24, when a massive sell-off resulted in the BTC price plummeting from $10,004 to $8055. This point was the start of a price and volume tumble that continues to the current day. Davethewaave, a famous cryptocurrency enthusiast, tweeted:
“Blue lines equate to the cyclical mean. Price being much more volatile both below and above the line, so shorter Mas are less significant. A further correction back to the line should NOT be alarming.”
Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
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