Bitcoin: Price Rises, But Trading Volume Disappears... Will It Fall to $74,000?

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The total cryptocurrency market capitalization failed to break through the $2.6 trillion resistance level, and trading volume sharply decreased, increasing the possibility of a major correction over the weekend.

According to the cryptocurrency specialized media BeInCrypto on April 24 (local time), the total cryptocurrency market capitalization turned to a downtrend after forming an uncertain Doji candle near $2.6 trillion last Wednesday. Editor Harsh Notariya analyzed that the cryptocurrency market capitalization fell by 1.35% from its peak, indicating an expanding decline.

This decline is in line with the widespread risk aversion sentiment in the global asset market. The U.S. stock market's S&P 500 index closed down 0.41% amid sluggish performance in software stocks. In particular, as geopolitical tensions surrounding Iran escalated again, Brent crude oil prices surpassed $104, ending the rally driven by previous ceasefire expectations. The flow of funds into the stock market has stopped, and capital outflow is intensifying ahead of the weekend.

TradingView analysis indicates that if the upper resistance level of $2.6 trillion in market capitalization is maintained, increased volatility due to lack of liquidity is a concern over the weekend. The primary support level is $2.49 trillion, and this zone must be held to seize an opportunity for a rebound. If it falls below $2.49 trillion, the downside will open up to the $2.41 trillion and $2.34 trillion areas. For the market to regain strength, it must definitively surpass $2.63 trillion.

Bitcoin (BTC) is currently hovering around $77,751, similar to 24 hours ago, and has recorded an increase of about 10% over the past month. According to Santiment data, major stakeholder wallets have accumulated 40,967 BTC over the past two weeks, still sending bullish signals on-chain. However, in terms of trading volume, signs of weakening buying pressure have been detected, requiring caution. Between early March and April 22, Bitcoin's price set higher highs, but trading volume peaks were lower, indicating a bearish divergence.

The critical price level that will determine Bitcoin's direction is the high of $79,501, formed on April 22 with light trading volume. To negate the warning signals from insufficient trading volume and aim for further gains, it must settle above $79,501 on a daily closing basis. If this resistance level is not breached and weekend liquidity issues coincide, the $74,887 support level will be tested first. If $74,887 breaks, $72,033 and $69,726 are expected to be the next support zones.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*