Bitcoin prices traded modestly lower Monday with the largest digital currency by market value residing just under $6,500. While bitcoin’s Monday declines were tolerable, what was more noticeable was slumping volume in the cryptocurrency.
Bitcoin, by far the largest digital currency, is not starved for attention, but that does not mean trading volume in the cryptocurrency is always robust.
In fact, some data points suggest that when the price of the digital currency falls, so does its volume.
“Over the past 24 hours, Bitcoin has achieved a new yearly low volume, demonstrating a lack of momentum and strength to recover to the higher region of $6,000,” reports CCN. “On Coinmarketcap, the volume of Bitcoin fell to $3.1 billion while it fell to $1.91 billion on CoinCap. The previous yearly low point of the Bitcoin volume was $3.2 billion on Coinmarketcap and $2 billion on CoinCap.”
Technical Challenges for Bitcoin
While volume in bitcoin is wilting, some market observers believe bitcoin offers near-term rally potential.
“Carpe Noctom, a respected cryptocurrency trader and technical analyst, stated that if BTC can close above the $6,800 mark in the days to come regardless of the low volume, a breakout above the $7,000 mark is still a possibility,” according to CCN.