Bitcoin Volume Continues To See Yearly Lows As Price Struggles To Recover
Bitcoin’s seven-day average trading volumes have continued to remain low, as the seven-day average trading volumes only reaching $3 billion. This comes on the heels of the digital asset seeing declining volatility in the market. The bitcoin trading market had seen a marked shift in trends as the average trading volumes remain at yearly lows.
This trend follows the trend seen in trading volumes from last summer. Bitcoin volume had also remained low last summer, and this summer so far has followed the same trend. Bitcoin trading volumes had seen a small recovery after a dip in June when crypto trading volumes were down all across the board. But now, volumes have continued to plummet.
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Bitcoin’s daily trading volume had hit its peak towards the end of May and the beginning of June before recording a sharp decline in its trading volume in the market.
Bitcoin Volatility Continues To Decline
Bitcoinist had reported back in June that the digital asset’s volatility levels had declined to the lowest levels since the bull run had begun back in 2020. So far, there has not been much change since the report had been posted. Bitcoin volatility continues to follow the dipping price of the digital asset, which has continued to stagnate since the crash started after hitting a new all-time high.
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According to Arcane Research, volatility levels continue to decline on a seven-day basis. The seven-day average for the digital asset’s volatility reached 1.68% for the past week. Seven-day volatility levels have not been this low since October of 2020 and fall in step with volatility levels from last summer.
For the past month, volatility has shown downwards movement. Speculations remain that at the end of this volatility drought is a period of extreme volatility that would come with a recovery in the price of the digital asset. But there has been no significant recovery since the report came out.
Price Setup For Recovery
The continuous lows of bitcoin volatility have converged toward the end of a two-month consolidation range. With this setup, a spike is imminent at this critical level for the digital asset.
Bitcoin’s momentum has slowed down significantly and the bears look to have a stronger hold on the price than the bulls. The asset came close to falling to the next critical support level at $28,500 after the price crash below $30,000. Although the digital asset has since recovered and is not trading back up past $31,000.
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A bounce on current support levels could see a continuation of the $32,000 consolidation level. This would be a resistance level that traders would be keeping a close eye on.
A price correction back above the $32,000 support level is imminent as the price is poised for recovery. But the market would need to see significant momentum for the digital asset to achieve this.
The market cap of bitcoin has recovered to over $600 billion, as the market continues to see price corrections.
Featured image from USA Today, chart from TradingView.com