- Bitcoin’s low trading volume hints at weak momentum, making traders cautious despite price gains and trendline support.
- BTC’s trendline has held firm for two years, keeping bullish hopes alive, but inconsistent volume adds uncertainty.
- A push toward $100K remains possible, but without stronger volume, sustaining rallies may be difficult. Support levels are crucial.
According to Santiment data, the crypto market has witnessed a steady decline in trading volume since February 27, when traders aggressively bought the dip. Since then, market cap losses have triggered mixed emotions, including exhaustion and capitulation. Major cryptocurrencies show reduced trading activity, even during minor price recoveries.
Besides, shrinking trading volume can be an early sign of weakening market momentum. When prices rise without a corresponding volume increase, it indicates a lack of conviction among investors. Moreover, institutional and retail traders seem hesitant to take action, leading to stagnation. Consequently, the absence of strong buying participation raises concerns about potential downturns.
Bitcoin’s Trendline Holds Strong Amid Market Hesitation
Despite waning enthusiasm, Bitcoin maintains its long-term ascending trendline as per analyst Crypto Caesar, which has provided support for over two years. Historically, this trendline has facilitated multiple rebounds, leading to higher highs. Hence, the continuation of this trend may signal potential bullish movement.
Moreover, Bitcoin is forming higher peaks. As long as the trendline holds, bullish momentum remains possible. The weekly chart shows rallies following trendline bounces, reinforcing confidence in Bitcoin’s resilience. In the past, upward trends have been reinforced by Bitcoin breakouts that have occurred in tandem with higher volume. The volume is still erratic at the moment, which allows for ambiguity.
Price Projection: Can Bitcoin Reach $100K?
The Bitcoin price is currently standing at $83,229.13, a 3.14% gain in the latest session. Previous data shows that consolidations near this trendline have typically led to breakouts. Therefore, sustaining support above this level may send Bitcoin to new levels.
Additionally, if momentum gathers pace, Bitcoin can target $100,000. However, in the absence of trading volume, upwards moves may fail to hold. Further, a breakdown below the rising trendline can turn sentiment in favor of bearish momentum. Caution might prevail in market sentiment until volume rises.
