The cryptocurrency market has entered a peculiar phase, with trading volumes and market sentiment showing signs of a slowdown despite a growing market cap. In this article, we break down the recent developments in Bitcoin (BTC), Ethereum (ETH), and the broader crypto landscape to help you stay informed.
Weekly Crypto Volume Hits Multi-Month Lows
Recent reports reveal that weekly crypto trading volumes have fallen by 32% compared to average levels, hitting their lowest mark since July. Bitcoin’s weekly volume plunged to $59.9 billion, a 31% drop, while Ethereum activity fell even further, declining 43% to $21.1 billion. This reduction in activity is coupled with decreased Ethereum network fees, which dropped to just 0.05 Gwei, indicating drastically reduced usage.
Bitcoin’s Struggle with Resistance Levels
Bitcoin has repeatedly been rejected at the $92,000 resistance level, signaling hesitation in the market. As of now, the critical support range lies at $87,000 to $86,500. A further drop could push BTC prices toward $82,500. Experts point out that Bitcoin is forming lower highs, indicative of active selling and limited upside strength. For now, patience is advised as the market hovers between resistance and support zones.
Bearish Signals and Market Sentiment
Volatility in the crypto market has significantly diminished. Bitcoin futures open interest dropped by $1.1 billion, reaching $29.7 billion, while funding rates remain weak, demonstrating a lack of strong conviction among traders. Meanwhile, Ethereum futures show a slight uptick, with open interest growing to $16.2 billion. Still, leveraged trading activity contrasts with low spot volumes, reflecting a cautious market sentiment.
China FUD and Its Market Impact
Concerns from China continue to loom over the market. The Chinese central bank reiterated its ban on cryptocurrency, further alarming an already fragile market. This news amplified fears, leading Bitcoin to drop below $90,000 and lose key Fibonacci levels. The Relative Strength Index (RSI) suggests the market is not oversold yet, leaving room for further declines. Analysts believe this could mark the early stage of a possible 2–3 year correction cycle—a common follow-up to major bull runs.
What Lies Ahead?
As the crypto market navigates this transitional period, traders are advised to adopt a wait-and-see approach. Monitoring Bitcoin’s ability to reclaim $92,000 or break below $85,000 will offer clearer market direction. For those looking to invest in safe crypto practices, hardware wallets like the Ledger Nano X serve as a trustworthy solution for safeguarding digital assets during uncertain times.
While the cryptocurrency market is inherently volatile, these low-volume periods often signify a consolidation phase that precedes a new trend. Staying informed and cautious is key as the market recalibrates.
