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bitcoin volume has seen a serious drop amid its <a target="_blank" href="https://bitcoinist.com/bitcoin-price-donald-trump/amp/” rel=”nofollow”>initial price impulsefalling approximately 27% and causing a subsequent drop in the value of the pioneer cryptocurrency. This significant drop in volume has caught the attention of market participants as one crypto analyst is discussing the mechanics and significance of a drop in bitcoin and whether it indicates a <a target="_blank" href="https://bitcoinist.com/bitcoin-on-chain-data-shows-two-distincts-phases/amp/” rel=”nofollow”>Distribution or accumulation phase.
bitcoin Price Falls as Volume Drops 27%
<a target="_blank" href="https://coinmarketcap.com/currencies/bitcoin/” rel=”nofollow”>Data of CoinMarketCap has revealed that the newspaper bitcoin trading volume has plummeted. 26.46%, bringing the value to 85.89 billion dollars. This significant drop in bitcoin volume coincides with a broader correction in the cryptocurrency's price.
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In the last 24 hours, btc has seen a price pullback to $87,848, at the time of writing. Cryptocurrency was previously trading above $90,000but recently it has decreased by 2.87%. This drop in volume often indicates a reduced market interest or lack of enthusiasm. However, this may not be the case for bitcoin as the cryptocurrency has been experiencing high market activity due to the recently concluded US presidential election which resulted in a Donald Trump's victory.
The most likely reason for the volume decrease could be a market consolidationwhere bitcoin price could stabilize before a possible breakout. Backing this up, a crypto analyst, 'Personal Trader',<a target="_blank" href="https://x.com/personeltrader/status/1856366363083714706?s=46″ rel=”nofollow”> fixed that the market has entered a phase of decline, where bitcoin could enter its last correction period before moving towards the $100,000 milestone.
btc price drop may indicate a distribution or accumulation phase
Given the recent bitcoin price drop and volume, a crypto analyst identified as 'IonicXBT' has turned to x to identify and<a target="_blank" href="https://x.com/theionicxbt/status/1857132875700678838?s=46″ rel=”nofollow”> discuss The significance of this decline utilizes two main trends exhibited in a bitcoin market cycle: the accumulation and distribution phases.
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He <a target="_blank" href="https://bitcoinist.com/bitcoin-holders-return-accumulation/amp/” rel=”nofollow”>Accumulation phase is when smart money, including investors or institutions, starts to buy bitcoins. During this phase, prices tend to be low or have stabilized after a decline. Besides, bitcoin trading volume increases in the same period in which buyers intervene to drive up prices. Additionally, each bullish price move tends to show strong volume, indicating increased buying pressure.
On the contrary, the Distribution phase is when the smart money is used. sell or distribute your bitcoin. During this phase, prices may have peaked or are considered overvalued. btc volume increases while its price falls, indicating intense sales pressure. Furthermore, price spikes accompanied by low trading volume suggest weak buying interest, a red flag indicating that the smart money is exiting the market.
Based on these bitcoin phases, IonicXBT has revealed that it will call the Top and bottom of the bitcoin market soon. The analyst has shown that bitcoin is not currently in its distribution phase, meaning it is still a “buyer's market,” suggesting the possibility of future price increases.
Featured image created with Dall.E, chart from Tradingview.com
