Summer Season Traditionally has Low Bitcoin Trade Volume
The declining state of the daily Bitcoin futures trade volume can be linked to the activities surrounding the Summer holidays in the Northern Hemisphere. In this region of the globe, the Summer season is experienced between the months of March and late October or early November and is loaded with outdoor activities despite the spread of COVID19.
This pattern was highlighted in a report earlier this month by the team at Crypterium Analytics who explained that the same is true in the traditional stock markets.
The summer season has always been a bad time for trading. And this applies to both cryptocurrency and traditional financial markets.
And although media says the interest in BTC is rising, it’s partly fiction. All due to the fact that the market has very low in liquidity and number of players.
Bitcoin Struggling to Maintain $9,100
The low trade volume is also the reason that Bitcoin is lacking in volatility. In an earlier analysis, it had been discovered that $8,900 was the Bitcoin price level to watch this weekend. This was based on the fact that the price of Bitcoin was below the 50-day moving average and looked set to revisit the support zones of $8,900 and $8,600 respectively.
However, taking a look at the 6-hour Bitcoin chart, a falling wedge seems to be forming with its lower target being the aforementioned $8,900.
If the falling wedge plays out, Bitcoin could experience a bounce at the stated $8,900 level or even before. However, it is highly unlikely that a Bitcoin bounce around this level would translate to a push towards $10,000. Therefore, Bitcoin might just continue oscillating between the $9,300 to $8,800 price levels for a few more weeks.