- Bitcoin trading volume on CEXS will fall until 2020 levels.
- BTC investors have taken a step back and have been moved to holding their coins.
Bitcoin [BTC] Consolidation remains, activities in chains have fallen considerably.
According to the analyst of cryptoquant Axel AdlerThe average spot handle volume at centralized trade fairs has fallen until October 2020 levels.
Source: Cryptuquant
The significant decrease suggests that the market is experiencing reduced trading activity, with speculation across the board.
As a result, the user’s participation has been conducted, with active addresses that fall sharply.
In the past month, the number of active users has fallen to a monthly low of 779.8K, which strengthens the observation that market demand is weak and the interest in Bitcoin fades.
Source: Cryptuquant
Historically, such market conditions often precede a strong outbreak or extensive consolidation.
The participants are currently taking a step back and waiting for an ideal momentum before they re -enter.
According to Adler’s analysis, the market has been transferred to HODL mode, where few coins are sold on the spot or are moved in the chain.
This indicates that investors hold their assets, oppose short-term fluctuations and demonstrate a strong conviction.
Source: Cryptuquant
The shift in market sentiment is reflected in the average era of the Muntdollar, which has risen to 18.03 million.
A persistent increase in this metric suggests that coins are getting older without being spent, which indicates strong holding behavior.
As a result, the trade volume is declining, with investors taking off exchanges.
Looking back on 2020, when the exchange volume fell to comparable levels, the market cooled before he gathered to a new high in 2021.
What is the next step for Bitcoin?
As observed above, Bitcoin is currently in a quiet phase, with market participants who show indecision.
As a result, the exchange activity has fallen considerably, whereby the fund current ratio falls sharply in the past week.
Source: Cryptuquant
With the drying out of the exchange activity, Bitcoin goes in a phase with low volatility, whereby prices consolidate until a market trigger pushes up or down.
Historically, low trading activity has often preceded the expansion of volatility, especially after accumulation periods such as the current one.
If the historical cycle applies, Bitcoin will probably exchange sideways before he breaks up. In the short term, BTC can fluctuate between $ 104k and $ 107k and then push to $ 109,208.
However, if the market sentiment shifts from hodling to sale, this bullish prospect would be invalid, which leads to a close break.
In that case, BTC can return to $ 101,500 in the midst of sales pressure.