Cryptocurrency Despite the recent relaxations in the market and Bitcoin price, traders and investors are not in a hurry and remain cautious according to the volume indicator, which indicates that most centralized exchanges lack purchasing power.
Volume profiles from June 18 to June 24 continue to decline despite the upward movement in prices. Such a divergence could be a cause for concern, as it indicates that the current short term is actually nothing more than a short-term correction that will lead to a continuation of the downtrend.
As Koinfinans.com stated, the same volume model also applies to intraday charts such as four-hour and one-hour timeframes, showing that Bitcoin lacks support from both speculative traders and investors.
Is This Situation in Bitcoin Data Really That Bad?
Total purchasing power bitcoinIt could be an alarming sign for investors betting on the impending reversal following the rally above $20,000, but massive liquidations and due to the margin calls that institutions received during the fall of BTC, there was no source of entry left in the market, which slumped from $30,000 to $17,000.
A disaster among institutional investors drove them out of the market, and it looks like only a prolonged consolidation could attract more investors in the future. Because this means that the market has stabilized and can offer positive returns in the future.
In addition to the technical and market problems of the cryptocurrency industry, the Fed’s hawkish sentiment will likely put constant pressure on risky assets such as cryptocurrencies and tech stocks.
At the time of writing, Bitcoin managed to trade around $ 21,200, and managed to take a step towards $ 21,000.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.