Bitcoin, the world’s biggest cryptocurrency, has been consistently consolidating in a tight range between $59,800 and $71,600 since March 2024. In this ongoing consolidation, an on-chain analytic firm Santiment recently made a post on X (previously Twitter) stating that this struggling market experienced a heavy drop in trading volume.
Record 65% drop in trading volume
According to Santiment, this challenging market not only lowers traders’ and investors’ interest but also decreases the trading volume similar to that of late January 2024, indicating uncertain sentiment among traders and investors.
Additionally, the number of those passionate about calling “buy the dip” has massively decreased compared to the previous time, while the support of the bull cycle is currently staying quiet. However, at the same time, there still seems to be a large contingency of traders who don’t want to move their assets for fear of missing out on a relief rally.
As a result of all of these factors during these challenging market conditions, Bitcoin trading volume has massively dropped by 60-65%, currently standing near $30 billion. This massive drop comes after a big week of trading at the end of February 2024 when the trading volume was near $83.23 billion, making a 15-month high. Santiment also added that many factors can signal a turnaround and indicate that the market could rally in May 2024.
Bitcoin price-performance analysis
At the time of writing, Bitcoin is currently trading near $61,700, and in the last 24 hours, it experienced nearly 1.5% downside momentum. If we look at the performance of Bitcoin over a longer period, in the last 7 days, it experienced nearly 7% downside momentum, whereas in the last 30 days, the price has dropped by 12%.
According to expert technical analysis, Bitcoin is looking bearish and heading toward $60,000. If Bitcoin’s price gives a breakdown of this consolidation zone and on the daily timeframe BTC daily candle closes below the $59,800 level, then there is a high probability it could massively fall. On the other hand, this lower level will also act as a demand zone, and prices may bounce back to the $66,500 level.
