Bitcoin Average Trading Volume On CEX Stands At $31B – Still Far From The Record Highs In March

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As a researcher with years of experience studying the cryptocurrency market, I have seen my fair share of bull runs and bear markets. The current situation with Bitcoin feels familiar yet unique at the same time. The price pullback from its all-time high is reminiscent of past cycles, but the involvement of traditional finance institutions adds a new layer of complexity to the mix.

Bitcoin has experienced a series of days with subdued price fluctuations, dropping from its record high of $108,364 to a recent low of $92,100. However, the overall bullish trend persists, sparking optimism among analysts and traders who anticipate that the Bitcoin rally might recommence at any instant. The market mood is somewhat cautious yet hopeful, as investors closely monitor significant support and resistance levels for signs of the next significant price shift.

CryptoQuant analyst Axel Adler recently shared intriguing data on X, shedding light on Bitcoin’s current trading dynamics. According to Adler, the average daily trading volume on centralized exchanges (CEX) is currently at $31 billion—significantly lower than the $40 billion record highs observed in March and December of this year. This decline in trading activity suggests that market participants are waiting for clearer signals before committing to large positions.

The decrease in Bitcoin trading indicates a period of holding or gathering, suggesting that the value may rise further since it’s holding above key support points. There’s still optimism in the air, and data shows strong foundations, so the upcoming days could give us important clues about where Bitcoin is headed next. Investors are keeping an eye on price movements to spot any resurgence of momentum as we prepare for what might be the next surge in Bitcoin’s growth trend.

Metrics Suggest An Ongoing Rally

Bitcoin has experienced a phase where it’s been stuck below its record high, causing some investors to feel apprehensive, questioning if the peak of the cycle has already passed. This doubt has grown stronger due to the recent drop in price, but crucial indicators hint that there is still potential for expansion and interest within the market. Despite the current trends appearing bearish to certain observers, the underlying information suggests a positive outlook in the short term for Bitcoin.

As a crypto investor, I’ve been keeping an eye on the market trends, and recently, top analyst Axel Adler shed some light on the situation regarding cryptocurrency X. Interestingly, he highlighted that the average daily trading volume on centralized exchanges (CEX) is currently hovering around $31 billion. This figure, however, is $9 billion less than the peak we saw in March and December of this year.

Although there’s been a drop in transaction numbers, it seems more like a period of market consolidation instead of a significant downturn. Notably, ETF trading volumes are robust, with an average of $4.4 billion traded each day and peaking at $6.7 billion in March. This means that the total daily trading volume averages around $35.5 billion, demonstrating continuous market activity.

Imagine if traditional finance had never developed. In that hypothetical situation, the market might have persisted much like it did historically, primarily influenced by futures and spot market activities at peak cycles.

 The involvement of TradFi has undoubtedly added liquidity, but it hasn’t fundamentally altered the market’s natural dynamics. The fact that Bitcoin continues to experience healthy trading volume suggests that the bull market may not be over just yet.

Bitcoin Holding Strong Above $95K

Right now, Bitcoin is keeping its value above the crucial threshold of $95,000. This level plays a significant role in predicting short-term trends because it has previously functioned as a strong support zone. If Bitcoin manages to stay above $95,000 over the next few days, a surge towards $100,000 could occur. Such an increase would suggest that the bulls are regaining strength and are ready to test earlier peak records.

If Bitcoin (BTC) can’t maintain its position above $95,000 and drops from that support level, it could lead to testing lower areas where demand is stronger. In such a case, the next major support zone might be around $92,000, which may serve as an important test for the market’s resilience. If BTC falls below this point, it would raise the chances of a more substantial correction, potentially pushing the price down towards even lower values.

Over the next few days, it’s essential for BTC to hold above $95K to keep the positive trend going and prevent any additional bearish influence. The market is currently teetering on a knife’s edge, and the upcoming developments could decide whether Bitcoin will climb higher or encounter a substantial correction.

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2024-12-23 21:41