The ongoing sell-off in the cryptocurrency ecosystem seems to have taken a pause as Bitcoin (BTC) has finally established support at the $61,100 mark. As of this writing, the combined market capitalization of cryptocurrencies has decreased by 0.55% to reach $2.56 trillion, with Bitcoin trimming its losses. The digital currency has declined by 1.83% to $61,113.37.
Unusual Trading Volume Impact
Over the past seven days, Bitcoin’s price has dropped by more than 7%, marking one of its worst weekly performances this month. However, on-chain data links trading volume to $42 billion, a 135.56% increase over 24 hours. This three-digit surge underscores growing, albeit subtle, bullish sentiment for Bitcoin’s price. While this positive sentiment has yet to fully manifest, it is crucial for printing a recovery. Recently, Bitcoin’s price has not been traded at such low levels, with the spot ETF market providing much-needed support so far.
Currently, the significant rise in Bitcoin’s trading volume is entirely driven by retail sales, given the continued outflows from spot BTC ETF products.
Read more Potential for Bitcoin’s Price Surge Based on Current Liquidity Distribution
Revival Trigger to Watch
While Bitcoin shows some resilience, sustained recovery largely depends on external factors. Although many external forces cannot drive Bitcoin prices higher, the potential approval of S-1 registration filings for a Bitcoin ETF might do the trick. Additionally, the ongoing recovery in the altcoin ecosystem could complement the near-term rebound. Ultimately, Bitcoin’s price is poised to reach its bottom, setting the stage for the much-anticipated bounce-back. As short-term Bitcoin holders begin to take profits upon recovery, this will help maintain the rebound in check.
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