While Bitcoin (BTC) continues to trade near its all-time highs (ATHs), trading volume on major exchanges has sharply declined in recent months. This downturn has raised concerns about the sustainability of the current rally.
In a recent CryptoQuant Quicktake post, contributor caueconomy highlighted the significant drop in BTC trading volume across top cryptocurrency exchanges. Notably, trading volumes have reached multi-year lows, reflecting a reduced appetite for trading – particularly among retail investors.
Additionally, caueconomy pointed to waning interest in altcoins as another contributing factor. This trend is evident in the declining Ethereum (ETH)/BTC ratio and the subsequent rise in BTC dominance.
The analyst concluded that monitoring any spikes in trading volume will be critical, as renewed demand often signals the approach of a local market top. At present, BTC is trading roughly 6.4% below its all-time high.
Amid the current sideways price action, some analysts are still waiting for a definitive directional breakout. For example, renowned analyst Titan of Crypto identified $109,000 as a crucial resistance level. They stated:
BTC needs to break above the last Lagging Span peak to unlock further upside. A rejection wouldn’t invalidate the trend as strong confluence support remains around $100,000. We’re not there yet.
Similarly, crypto analyst Merlijn The Trader noted that BTC is forming a bullish inverted head-and-shoulders pattern on the 3-day chart, with a neckline around $113,000. A breakout above this level could pave the way for a new ATH near $140,000.
