Bitcoin endured days of bearish price action, retreating from its all-time high of $108,364 to a local low of $92,100. Despite this sharp pullback, the price structure remains bearish, fueling optimism among analysts and traders who believe that Bitcoin’s rally could resume at any time. Market sentiment appears cautious but optimistic, with many key support and resistance levels confirming the next big move.
CryptoQuant analyst Axel Adler recently shared some interesting data on X, which sheds light on the current volatility of Bitcoin trading. According to Adler, the average daily trading volume on the central exchange (CEX) is currently $31 billion—well below the record high of $40 billion seen in March and December of this year. This decrease in trading activity suggests that market participants are waiting for clear signals before committing to large positions.
The reduced trading volume highlights the area of consolidation and possible accumulation as BTC continues to hold above key support levels. With bullish sentiment still strong and on-chain metrics pointing to strong fundamentals, the coming days could provide important insights into Bitcoin’s trajectory. Investors are now closely monitoring price action for signs of renewed momentum as the market looks for what could be the next phase of the Bitcoin bull run.
Metrics Suggest Continuous Meeting
Bitcoin has been experiencing a period of consolidation below its all-time high, and many investors have felt a sense of uncertainty, wondering if the peak of the cycle has arrived. These fears have been heightened by the recent price pullback, but key metrics suggest there is still plenty of room for growth and demand in the market. The current price action may look bearish to some, but fundamental data points to a continued bullish outlook in the near term.
Senior analyst Axel Adler recently shared insightful data on X, revealing that the daily trading volume on the central exchange (CEX) currently stands at $31 billion, which is $9 billion lower than the record high seen in March and December of this year.
Despite this drop in volume, it suggests that the market is in a consolidation phase rather than a complete decline. Additionally, ETF trading volumes remained strong, averaging $4.4 billion per day, with a peak of $6.7 billion reached in March. Combined, these metrics add up to an average of $35.5 billion in daily trading volume, indicating significant activity in the market.
Now, consider a scenario where traditional finance (TradFi) did not enter the space. In such a case, the market would continue as it has done in the past—driven by futures and market activity during cyclical peaks.
TradFi’s involvement no doubt added money, but it did not fundamentally change the natural dynamics of the market. The fact that Bitcoin continues to experience healthy trading volume suggests that the bull market may not be over just yet.
Bitcoin Holds Strong Above $95K
Bitcoin is currently holding above the key level of $95,000, which is an important price point for determining the short-term direction. This level has served as an important support point, and if BTC can maintain its position above $95K in the coming days, a push towards the $100K mark can be expected. This potential rise would indicate that the bulls have regained control and are preparing to challenge the highs of previous periods.
However, if BTC fails to hold above $95K and loses this support level, it may send the price to test the most sought-after areas. In this scenario, the next key support level lies around $92,000, which could serve as a critical test of market strength. A break below this mark would increase the chances of a deep correction, and BTC could possibly continue to lower and even lower levels.
The coming days will be important for BTC, as maintaining support above $95K is essential to maintain bullish momentum and avoid further pressure. The market remains a delicate balance, and the next move could determine whether Bitcoin continues to rise or faces a more significant pullback.
Featured image from Dall-E, chart from TradingView
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