End of statement? Bitcoin volume dropped 55% and worries

The daily transaction volume on the Bitcoin network has dropped more than 20% in recent weeks. According to report of The Block, the weekly chart recorded about 217,000 transactions last Sunday (6). The index last reached this zone in August 2018.

In addition, the number of dollars online daily fell 55%, from $ 17.3 billion to $ 7.7 billion. Although the scenario is not very optimistic, experts explain that a change in this indicator may indicate new cases of recovery.

Other technical indicators of BTC were also touched upon, such as the current confusing relationship of long and short positions. At the time of this writing, the numbers indicate indecision.

Bear market?

The daily transaction volume on the Bitcoin network has dropped to three years ago. As of August 31, 2018, the number of operations in the ecosystem was 217.15 thousand.

The fall occurs after a series of market corrections. Part of this drop is due to statements by Elon Musk and the restrictions of the Chinese government on cryptocurrencies…

Bitcoin’s margin is currently hovering around $ 36,000. A devaluation of 43.7% from an all-time high of $ 64,000.

In addition, Glassnode data points to a large amount of withdrawals from exchanges this month. According to the report, the number of withdrawals is the highest since November 2020.

Analysts usually associate the withdrawal of cryptocurrencies from exchanges with a positive sign. Cryptocurrencies are believed to be moved to safer storage as traders expect more valuation.

In this scenario, buy and sell orders – a long e short – to present an indecisive market. Survey Binancefor example, assumes that 50.3% of investors are betting on price increases over the long term.

Meanwhile, about 49.7% of investors are betting on the fall.

what experts say

According to a survey by CoinDesk Markets, volume is considered the most important by 38% of experts.

“Volume is, without a doubt, the most important aspect besides price. […] For many other technical indicators, volume can confirm or reject this hypothesis, ”said Matt Thompson, director of business development and operations at Coinigy. CoinDesk…

Analysts use the indicator to determine trading advantages. It is clear that if the price Bitcoin falls with volume, a possible reversal will soon occur in the market.

The same can happen if the price rises at the same time as the volume falls. Such a sign is a strong indicator of decline. That is, at first the metric may be negative.

However, the fall in volume in a lateralized market – the current case of Bitcoin – is thought to leave room for different outcomes. If from here the price rises along with the volume, an uptrend can be expected in the short term.

Read also: Brazilian Traders Are Some Of The Top Gains In 2020 From Bitcoin

Read also: Analyst Explains 10x Growth In Revenue With Cryptocurrencies

Read also: Is it good to invest in Oi shares after asset auctions?