Trading volumes keep falling these days amid lower prices and lower volatility
Bitcoin managed to erase intraday losses to finish marginally higher on Wednesday. Still, the leading digital currency failed to regain the $33,000 figure and came under renewed selling pressure today. A bounce from lows was in part due to Federal Reserve Chair Jerome Powell’s assurances that he’s still not seeing substantial further progress on an economic recovery, suggesting the central bank will not rush to tighten monetary policy anytime soon.
The BTCUSD pair remains range-bound while trading volumes keep falling these days amid lower prices and lower volatility. Bitcoin’s dominance stood at 46.25% on Thursday, slightly off an early low of 46.10%.
Of note, trading volumes at the largest exchanges, including Coinbase, Kraken, Binance, and Bitstamp, fell more than 40% last month. A daily volume maximum of $138.2 billion on June 22 was down 42.3% from the intra-month high in May.
Now, bitcoin needs to get back above $33,000 in order to overcome the $33,500 intermediate resistance. Failure to do this would bring recent lows around $31,500 into play.
It looks like the cryptocurrency will stay directionless in the short term amid a lack of drivers that could push the prices out of the boring range in either direction. The technical picture looks neutral for the time being. Traders buy the dips and sell on rallies, suggesting the consolidative period is not over yet.
On the negative side, the Federal Bureau of Investigation (FBI) has warned bitcoin and cryptocurrency buyers, exchanges, and payment platforms over the growing threat of criminals looking to steal bitcoin and crypto-assets. The agency noted that soaring bitcoin and cryptocurrency prices earlier this year have attracted a wave of cybercriminals.