Volume indicator shows no support above bitcoin
Despite the most recent relief in the cryptocurrency market, traders and investors are not rushing and remain cautious, according to volume indicators, which show that no buying power exists on most centralized exchanges.
Between June 18 and June 24, the volume profile continues to decline, although the price is facing an upward move. Such divergence could be a worrying sign as it suggests that the current short-term is really nothing but a short-term correction, which will lead to a continuation of the downtrend.
Similar volume patterns prevail on intraday charts such as the four and one hour time frame, indicating that bitcoin has no support from both speculative traders and investors.
Is it really that bad?
The complete lack of buying power could be a worrying sign for investors who bet on an impending reversal following bitcoin’s return above $20,000, but market inflows due to massive liquidation volume and margin calls. There is no source left of what institutions received during BTC’s plunge. From $30,000 to $17,000.
A total disaster among institutional investors drove them away from the market, and only a prolonged consolidation could attract more investors in the future, as it would mean the market has stabilized and could produce positive returns in the future.
In addition to the technical and market issues facing the crypto industry, the Fed’s flurry of sentiment will most likely put continued pressure on riskier assets such as cryptocurrencies and tech stocks.
At press time, bitcoin is trading at $20,900 and has failed to gain a foothold above $21,000.