Fear is rising in the larger crypto market as the king crypto is in its correction phase, and trade volumes are sinking down. Bitcoin (BTC) after making a new all-time high of $73,750.07 on March 14 2024, has moved in a downward momentum amid profit taking from investors.
At the time of writing, the crypto market experienced low volatility and low trading volumes, particularly as BTC faces a significant drop in trading activities both from retail and investment sides.
Moreover, the once-loud calls of #buythedip and #bullcycle have now died down. Amidst this, a large number of traders are holding onto their assets, possibly waiting for the relief rally? Let’s find out
Bitcoin (BTC) Exchange Reserves Surge: Is It A Red Signal?
As per data from Crypto Quant, BTC exchange reserve has increased, indicating higher sell-side pressure. When the exchange reserve continues to rise, it indicates that market participants are more prone to selling.
In the last 24 hours, the exchange reserve rose by 0.17%, while it increased by 0.22% in the last 7 days. At the time of writing, Bitcoin Exchange Reserve stands at 1,932,742.
Furthermore, the Bitcoin trading volumes have plummeted by 60- 65% since the February end. This decline in the volume is a critical indication of market indecision, with many traders on the sideline, paralyzed by the current market conditions.
Bitcoin Crypto Price and Volumes are Plummeting: What Next?
BTC’s volume and price graph displayed that the trading volume has decreased from $102.4 Billion to $27.6 Billion in the last 2 months alongside price. In the last 1 month, the price has plummeted by 11%, presenting that the price is in the bear’s grasp.
Bitcoin Crypto Social Dominance vs Social Volume Analysis
According to Santiment data on social dominance and social volume, the level of awareness and interaction for Bitcoin crypto on social media platforms such as X, Instagram, and Telegram has decreased over time.
This decline has had a negative impact on the price of Bitcoin. It is possible that the next momentum of the Bitcoin crypto price could be influenced by changes in social dominance and social volume.
Impact on The Altcoins: Solana (SOL) and PEPE
Bitcoin price action often sets the tone for the rest of the cryptocurrency market, including altcoins like Solana (SOL) and Pepe. Historically, there has been a correlation between the prices of BTC and other altcoins, suggesting that movements in Bitcoin’s price can significantly influence the prices of SOL and PEPE.
Both Pepe and Solana have been following BTC’s trend since mid-March when BTC experienced a halt from its all-time high. Currently, SOL and PEPE are facing a weakness on the daily technical chart.
Conclusion
The crypto market is experiencing low volatility and trading volumes, particularly with BTC, which has faced a significant drop in trading activities. Bitcoin trading volumes have plummeted by 60-65% since February end.
This has resulted in a decline in price and decreased trading volume from $102.4 Billion to $27.6 Billion in the last 2 months. The price action of Bitcoin often sets the tone for the rest of the cryptocurrency market, including altcoins like Solana (SOL) and PEPE. Currently, SOL and PEPE are facing a weakness on the daily technical chart.
Disclaimer
The analysis provided in this article is for informational and educational purposes only. Do not rely on this information as financial, investment, or trading advice. Investing and trading in crypto involves risk. Please assess your situation and risk tolerance before making any investment decisions.
