Bitcoin Spot Volumes on Decline, Is Bottom Near?
A declining spot trading volume is often seen as a bullish sign for the Bitcoin market as traders often move their holdings out of the exchanges in anticipation of a price surge. While spot volumes are on a continuous decline the derivative exchange volume is on the rise again which is another sign that traders are confident about trading with leverage.
Before the current market mayhem, Bitcoin was on a record-setting spree and hit a new ATH every month since the start of 2021. The consolidation phase after each ATHs became longer but there was no sign of Bitcoin price reaching a potential top even after the recent 50% drop from the top. Analysts have pointed towards multiple corrections of over 50% during the previous bull cycles.
Is Bitcoin Bottom Round the Corner?
Every bull run comes with a price shakeup to clear the froth created by over-leverage trades to clear weak hands. The recent market correction was one of them after nearly 5-6 months of continuous rise. The on-chain analysis suggests the market sentiment is currently neutral and we may be nearing a bottom before a move up.
The bitcoin dominance also bottomed at 38% and has been on a continuous climb since then currently above 43.5%. With the Biden administration announcing another $6 trillion package to recover the economy, Bitcoin price benefits from the flow of money in the crypto market.