Bitcoin has seen a massive rally lately over the past two weekends that has resulted in a surge in trading volume. After a long period of low prices in the market. The recent rally has revived a number of things in the market. Now including trading volume as volumes bounce back to pre-decline levels. Trading volume saw a huge surge in the three days following the price rally. Trading volume returned to June levels between July 26th and July 28th.
But now the volume of trade has hit a roadblock again. As volumes have now continued to decline after peaking on July 28th. In the past four days, Bitcoin’s trading volume has decreased. Shortly after a price drop where the price plummeted again. After hitting the $ 42,000 mark, it has now plunged back below $ 40,000.
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Trading volumes, which usually follow the asset price, have not deviated from this trend. For much of the month of July, Bitcoin hit record lows as the digital asset struggled in the market. Bitcoin’s price rally sparked hope for a recovery. But it is now becoming clearer that the recovery would not take as long as speculated.
Trading volumes are picking up speed
Bitcoin trading volume had seen consistently low numbers before the rally. Daily trading volumes below $ 3 billion on weekends were the norm for four weeks. This low streak ended with the weekend rally. Which drove the daily trading volume to over $ 4 billion per day. Closing the weekend with around $ 4 billion after the weekend boost.
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As last weekend drew near, trading volumes for the digital asset continued to rise. Rising north of $ 6 billion as trade picks up again. The high Bitcoin prices after the weekend sparked more interest in the digital asset. When investors and traders alike flowed back into the coin. The market recently moved out of “extreme fear” last week. Shows favorable trends in the movement of the asset.
Bitcoin price registers increased trading volume after price rally | Source: Arcane Research
With the increased momentum came increased trading prices. The mood continues to be positive for the digital asset. Although falling Bitcoin prices could be cause for concern when it comes to maintaining these levels.
Bitcoin price movements
Bitcoin’s price rose in line with trading volumes. Because normally there is no one without the other. The price of the asset broke the dreaded $ 40,000 resistance point over the weekend. Rally to $ 42,000 before changing direction towards a downtrend. Completion of the week-long upward trend in the market.
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The price of the digital asset had fallen back below $ 40,000 by the start of the new week. On Monday, the price of Bitcoin moved in and out of the $ 39,000 range. Before you commit to anything over $ 39,224.88.
Tuesday has continued the same downward trend so far. Bitcoin’s price is being pushed below the closing price of $ 39,000. The current price of the digital asset is as low as $ 38,000. Its current price sets the price of the digital asset at a loss of $ 1,000 over the past 12 hours.
BTC price lost over $ 1,000 | in 12 hours Source: BTCUSD on TradingView.com Selected image from CoinMod, diagram from TradingView.com