Hidden Weakness? Why Bitcoin’s Low Trading Volume Is a Major Warning Sign
2025-07-05 12:45:08
Main Idea
Bitcoin's declining trading volume signals a potential market weakness, raising concerns about its ability to sustain high prices amid reduced liquidity and increasing selling pressure.
Key Points
1. Bitcoin's monthly trading volumes have been declining since 2018, despite price gains, indicating a fragile foundation of thin liquidity.
2. Large holders (whales) are moving Bitcoin to exchanges, historically a sign of potential selling pressure.
3. Market experts warn that any decline in Bitcoin's price could be immediate and significant due to reduced active buyers.
4. Resistance near $110,000 has proven challenging, and the market's ability to sustain prices is uncertain if coordinated selling resumes.
5. The article highlights concerns about Bitcoin's parabolic rise under poor economic conditions, with some predicting a potential crash.
Description
A major divergence has appeared between Bitcoin’s rising price and its declining monthly trading volume The volume that supported previous all-time highs was approximately three times higher than today’s levels Analysts warn this thin liquidity could lead to a sharp downturn if large holders begin to sell Despite Bitcoin trading near record highs, a worrying on-chain signal is flashing a warning sign for the market. A multi-year decline in monthly trading volume has created a significant diverge...
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