Bitcoin held $70,000, but still has a long way to go... plummeting trading volume is a variable

▲ Bitcoin (BTC)/AI generated image

Bitcoin (BTC) is taking a breather around the $72,000 mark, and a diagnosis has emerged that a recovery in trading volume and a breakthrough of specific resistance levels are essential for further upside.

According to a report by CoinTelegraph, a virtual asset media outlet, Bitcoin recently rose 8% over three days, recovering to $72,000. In this process, it secured the 200-day exponential moving average of $68,000 and the 50-day exponential moving average of $70,000 as support levels. Analyst CW8900 explained on X (formerly Twitter) on April 9 (local time) that the area between $67,700 and $70,000 is currently a strong buying support zone.

For the uptrend to continue, it must break through the supply zone formed between $72,000 and $73,000. Over the past three months, investors have purchased approximately 386,100 BTC in this range. Experts predict that only by breaking this massive sell wall can Bitcoin achieve a further rally towards $75,000. Higher levels at $78,000 and $80,000 are also expected to act as strong resistance levels, as the average purchase prices of short-term holders are concentrated there.

Glassnode, in its weekly report, identified the $80,000 mark as a critical threshold for a trend reversal. The analysis suggests that long-term downward pressure may prevail until the price reclaims this level. Given the strong pressure from recent buyers to liquidate their holdings near their breakeven point, whether Bitcoin can firmly establish itself above $80,000 will be a crucial indicator in determining its future direction.

Overall market trading activity remains low. Bitcoin's on-chain transfer volume has plummeted by approximately 50.5% from 1.36 million BTC 30 days ago to currently 660,000 BTC. Spot trading volume also remains significantly lower compared to previous bull market peaks. Glassnode advised that a rebound not supported by spot demand could be vulnerable to volatility, and a clear expansion of trading volume would be the foundation for a healthy rise.

Bitcoin is currently consolidating support levels and seeking the opportune moment to break through key resistance levels. Indicators from the spot market and derivatives market are gradually entering positive territory, showing signs of recovery. Market participants are monitoring whether trading volume will accompany the attempt to reclaim the $80,000 mark and are reviewing their positions accordingly.

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