bitcoin has endured days of disappointing price action, retreating from its all-time high of $108,364 to a local low of $92,100. Despite this sharp pullback, the price structure remains bullish, fueling optimism among analysts and traders who believe bitcoin's rally could resume at any time. Market sentiment appears cautious but hopeful, with many looking to key support and resistance levels to confirm the next big move.
CryptoQuant analyst Axel Adler recently shared intriguing data about x, shedding light on bitcoin's current trading dynamics. According to Adler, the average daily trading volume on centralized exchanges (CEX) is currently $31 billion, significantly lower than the all-time highs of $40 billion seen in March and December of this year. This decline in trading activity suggests that market participants are waiting for clearer signals before committing to large positions.
The reduced trading volume highlights a potential consolidation and accumulation environment as btc continues to hold above critical support levels. With bullish sentiment still intact and on-chain metrics pointing to solid fundamentals, the coming days could provide critical insights into bitcoin's trajectory. Investors are now closely monitoring the price action for signs of renewed momentum as the market prepares for what could be the next phase of bitcoin's bull run.
Metrics suggest continued rebound
bitcoin has been going through a period of consolidation below its all-time high, and many investors have felt a sense of uncertainty, wondering if the top of the cycle has already arrived. This fear has been amplified by the recent price decline, but key metrics suggest there is still plenty of room for growth and demand in the market. The current price movement may appear bearish to some, but the underlying data points to a continued bullish outlook in the near term.
Senior Analyst <a target="_blank" href="https://x.com/AxelAdlerJr/status/1871098556796301469″ target=”_blank” rel=”noopener nofollow”>Axel Adler recently shared interesting facts about xrevealing that the average daily trading volume on centralized exchanges (CEX) currently stands at $31 billion, $9 billion less than the all-time highs seen in March and December of this year.
Despite this decrease in volume, it suggests that the market is in a consolidation phase and not a complete slowdown. Additionally, ETF trading volumes remain strong, averaging $4.4 billion per day, with a high of $6.7 billion reached in March. Combined, these metrics add up to an average of $35.5 billion in daily trading volume, reflecting substantial activity in the market.
Now, let's consider the scenario where traditional finance (TradFi) never entered this space. In such a scenario, the market would likely have continued as it has in the past, driven by futures and spot market activity during cycle peaks.
TradFi's involvement has certainly added liquidity, but it has not fundamentally altered the natural dynamics of the market. The fact that bitcoin continues to see healthy trading volume suggests that the bull market may not be over yet.
bitcoin remains strong above $95,000
bitcoin is currently holding above the crucial $95,000 level, which is a key price point in determining the near-term direction. This level has acted as an important support zone, and if btc can maintain its position above $95,000 in the coming days, a push towards the $100,000 mark would be expected. This possible bullish move would indicate that the bulls are regaining control and preparing to challenge the previous all-time highs.
However, if btc fails to hold above $95,000 and loses this support level, it would likely send the price to test areas of lower demand. In this scenario, the next significant support level lies around $92,000, which could act as a critical test of market strength. A break below this mark would increase the likelihood of a deeper correction, with btc possibly moving towards even lower levels.
The next few days will be crucial for btc as maintaining support above $95,000 is vital to maintain bullish momentum and avoid further downward pressure. The market remains in a delicate balance and the next move could determine whether bitcoin continues its rise or faces a more significant pullback.
Featured image of Dall-E, TradingView chart
