PakGazette: Since its peak in November, trading volume has decreased sharply and current volume levels have fallen by approximately 97%. Bitcoin has seen a slight increase in price, approaching the $96,000 mark despite this sharp drop. This paradox draws attention to the special dynamics at work in the contemporary market.
Reduced liquidity is usually indicated by low trading volume, implying a lack of participation from institutional and retail investors. Although there may occasionally be erratic price swings as a result, calm market activity has facilitated the rise in the price of Bitcoin. Therefore, the modest uptrend we have seen may be due to more favorable trading conditions where the market is not burdened by as many sell orders.
Bitcoin price has temporarily recovered, but is still below the 50 EMA, a crucial indicator of market direction. A downtrend is usually indicated by trading below this level, and the bearish outlook could continue unless Bitcoin breaks above the 50 EMA with continued momentum. The 50 EMA is currently at a critical resistance level for Bitcoin, hovering around the $96,000 mark. The lack of trading volume in the broader market raises the question of whether Bitcoin can maintain its price levels.
Historically, low volume environments have preceded major price corrections or trend reversals. The 100 and 200 EMAs show that $85,000 and $76,500 are the next support levels to watch if the price is unable to move above the 50 EMA. At this time, Bitcoin’s price movements remain erratic and the Decreased volume can be both a benefit and a risk.
A break above this resistance could open the door to additional gains, while a rejection could signal fresh downward pressure, so investors should keep an eye on the $96,000 level. As the year 2025 approaches, Bitcoin’s subsequent actions will likely determine the course of the year.
