CNBC, citing CryptoQuant agency, reports that:
→ the total volume of bitcoins held on all cryptocurrency exchanges is at its lowest level since 2019;
→ as of August 26, the volume of bitcoin trading on all exchanges was about 130k BTC;
→ a maximum of 3.5 million BTC were traded in 1 day.
Perhaps the decrease in trading volumes is due to a drop in interest due to the uncertainty with the regulation of cryptocurrencies, or the fading of the bullish trend that began from the early days of 2023.
According to JP Morgan analysts, a decrease in open interest may indicate that the price of bitcoin is near a significant low, but the BTC/USD chart suggests that the bearish trend may continue. This is indicated by the descending channel, the outlines of which are becoming clearer.
The analysis shows that:
→ today, the price is near the median line of the descending channel. There are high chances that supply and demand will balance each other. And the price will be in a flat — then the trading volumes may decrease even more;
→ the level 25,500 continues to work as support;
→ an attempt to rise from this level on August 23 (shown by the arrow) failed, indicating the dominance of the bears;
→ the fact that the price of bitcoin is below 50% of the decline in A→B is bearish.
The bullish catalyst could be the approval of the SEC’s applications for the creation of ETFs based on bitcoin. But if there are no drivers for growth, the bears can push through the level of 25,500 — then it is possible that it will become resistance.
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