Bitcoin broke through $5,100, and the decline in trading volume is worthy of vigilance
Recently, the stability of the Bitcoin and encryption markets continued to increase. Although the trading volume was lower than average last weekend, there has not been any significant price fluctuations.
As mentioned in the previous paragraph, the bitcoin and integrated encryption markets have continued to decline in the past seven days, which means the market may be preparing for the recent large price volatility.
Bitcoin gradually broke through $5,100, and the transaction volume declined in reverse.
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At the time of this writing, Bitcoin offered $5,157, or 1.37%. Bitcoin is at the height of the day, but it is worth noting that the decline in trading volume may jeopardize any further strength.
Bitcoin's current trading volume is less than $10 billion, well below the weekly high of $20 billion. Bitcoin seems to be consolidating around current price levels, so a drop in trading volume may lead to greater volatility in the near future.
Not only is the volume of Bitcoin trading falling, but the volume of transactions in the entire encryption market has also declined in the past week. At present, the overall market has dropped from a high of more than 60 billion US dollars to more than 30 billion US dollars.
Analyst: Bitcoin will continue to lead the way in the encryption market in the near future
Josh Rager, a popular cryptographer on Twitter, compared charts for Bitcoin and the entire crypto market in a recent tweet. He said that when evaluating potential transactions, he would refer directly to the Bitcoin chart instead of the crypto market. Chart, because bitcoin has too much impact on the market:
“When I make a market price forecast, I will first look at the Bitcoin chart (because the bitcoin market share exceeds 50%), followed by the Ethereum and the Altcoin chart. Of course, Ethereum will also have a certain amount of altcoin in certain circumstances. The impact, but not always.—Josh Rager (@Josh_Rager) April 14, 2019”
Josh Rager also said that the surge in encrypted market capitalization last week did not trigger a rise in the price of the currency, but to some extent reflected the renewed interest of individual investors and traders in cryptocurrency.
“Considering W/BTC's 54% dominance in the market, MCAP's total volume has not been extremely bullish. But it does show investor/trader interest. — Josh Rager (@Josh_Rager) April 14, 2019"
With the arrival of the new week, the market trading volume may rebound, and investors and traders will have a better understanding of the direction of the market.
Remarks: Bitcoin86 manuscript article, please indicate the source. The article is an independent view of the author and does not represent the standing position.
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