Bitcoin’s Trading Volume Drops As Dogecoin Rallies

Bitcoin’s trading volume drops while Bitcoin is up 20% over the past week compared to a 3% rise in BTC as we are reading more today in our latest dOGE news.

Bitcoin traded in a tight range this past week which provided a relief to the market participants after the volatile start of the year and the crypto was mostly flat over the past 24 hours and up about 3% over the past week compared to the 5% gain in ETH. Some traders and analysts remained careful despite the recent price bounce off $40,000 earlier this week. A Hong Kong crypto investing platform Q9 Capital wrote:

“Price swings are all happening on wafer-thin volumes, which can amplify price movements. No fresh capital is coming in and nobody is willing to sell or buy.”

The analyst at FxPro Alex Kuptsikevich also wrote:

“Attempts earlier in the week to form a rebound are encountering more substantial selling, further indicating seller pressure.”

The analyst is also concerned about a further decline in Ether as the world’s second-biggest crypto by market cap after BTC and now Bitcoin’s trading volume drops. If the momentum continues to fade away, he anticipates a worst-case scenario of $1300 and $1700 ETH which is 50% below the current price level but not all of the corners of the crypto space are experiencing a slowdown inactivity. NFT trading volumes continue to surge like OpenSea’s larger NFT marketplace is on pace to surpass $6 billion in transactions by the end of the month.

DOGE as the popular dog-themed meme coin surged by 14% after Tesla made the announcement that it will take the crypto as payment for merchandise. DOGE is up about 20% over the past week. Some investors are still holding BTC in the long-term despite the recent market sell-off. The charts show an increase in the net position change among the long-term BTC holders and the accumulation of BTC around current price levels could also be a bullish sign. The increase in the long-term positions gave a positive outlook for BTC price according to Marcus Sotiriou who is an analyst at the UK-based digital asset broker Global Block.

Many crypto market analysts think the bottom is in for BTC and ETH after their terrible start to the new year. BTC increased by 6% from this time a week ago and ETH is up by 10% since then. It has been the case, however, that the altcoins are doing much better in this new year. Not too long ago, it was rare to see a lot of projects surge while BTC and ETH remain stagnant.