Bitcoin has recently seen a massive rally for the past two weekends, giving rise to an increase in trading volume. Following a long period of low prices in the market. The recent rally has reignited a number of things in the market. Now including the trading volume, as volumes bounce back to levels before the decline. Trading volumes saw a huge spike in the three days following the price rally. Which saw trading volumes returning to June levels between July 26th and July 28th.
But now, the trading volume has once again hit a roadblock. As volumes have now continued to decline after hitting a peak on July 28th. The last four days have seen the trading volume of Bitcoin decline. Coming hot on the heels of a price dip that saw the price crashing again. After hitting the $42,000 mark, now crashing back down below $40,000.
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Trading volumes that usually follow the asset price have not deviated from this trend. The better part of the month of July saw Bitcoin hit record lows as the digital asset struggled in the market. The price rally of Bitcoin ignited hope for a bounce back. But it is now becoming more evident that the bounce-back would not last as long as speculated.
Trading Volumes Pick Up Momentum
Bitcoin trading volumes had seen continuously low numbers before the rally. Daily sub-$3 billion trading volumes during weekends were the norm for four weeks straight. This low streak was ended with the weekend rally. Which had pushed the daily trading volumes over $4 billion each day. Closing the weekend at around $4 billion following the weekend push.
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As last weekend drew closer, trading volumes for the digital asset continued to climb. Moving up north of $6 billion as trading picked back up. The high prices of bitcoin following the weekend saw more interest in the digital asset. As investors and traders alike poured back into the coin. The market had recently moved out from “extreme fear” last week. Showing favorable trends in the movement of the asset.
Bitcoin price see increased trading volume following price rally | Source: Arcane Research
With the increased momentum came increased trading rates. Sentiments continue to skew towards the positive for the digital asset. Although the declining prices of bitcoin could be a cause for concern when it comes to maintaining these volumes.
Bitcoin Price Movements
Bitcoin’s price rose according to the trading volumes. As there usually is not one without the other. The price of the asset had broken the dreaded $40,000 resistance point during the weekend. Rallying up to as high as $42,000 before changing direction towards a downward trend. Closing out the week-long uptrend in the market.
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The price of the digital asset had fallen back below $40,000 as the new week drew in. Monday saw the price of bitcoin weaving in and out of the $39,000 range. Before settling on a little above $39,224.88.
Tuesday has so far continued the same downtrend. Dragging the price of bitcoin down below its closing $39,000. Putting the current price of the digital asset in the low $38,000. Its current price putting the price of the digital asset at a $1,000 loss in the last 12 hours.
BTC price lost over $1,000 in 12 hours | Source: BTCUSD on TradingView.com
Featured image from CoinMod, chart from TradingView.com