ForexMinute.com – Does the trading volume of Bitcoin have anything to do with its price? Apparently, yes. Once again, we are met with such factors in the last 24 hours where the Bitcoin price suffered heavily owing to the uneasy trading volume at leading cryptocurrency exchanges. Low demand and supply once again drove the US and Chinese Bitcoin markets in the last 24 hours, inducing short-term bearish sentiment among traders. Supposedly, some trading entity sold a notable chunk of its BTC investments amid the pessimism.
This certainly led to massive falls in altcoins as well. At this hours, data available on CoinMarketCap.COM displays Litecoin, BitSharesX, NXT, and Peercoin in their respective bad phases. Even though, the worst is reserved for Dogecoin and Darkcoin – both of which fell with double-digit percentages in the last 24 hours.
Though, the Bitcoin price drop is very nominal compared to its last week’s disastrous performance. The drop there was mostly blamed on growing merchant adoption, but a panoramic view over the matter revealed something bitter like wash trading. Lacking a political debate in China, from where a majority of Bitcoin trades originate, wash trades doesn’t offer much to the market but hype. Exchanges normally don’t earn a penny out of trades in which buyers and sellers are the same entities. This ultimate erode the price of trading instrument, in this case BTC/CNY.
But the reason explaining the Bitcoin price fall in the last 24 hours can be the sell-off at a “supposed” peak level. Though, no official data is currently available to prove this theory. The same can also be said for Dogecoin and Darkcoin, which seems to be suffering from the “oh-i-am-at-peak” factor. This also made us expect some bullish signals from the coins in the future.
During the 10/1 trading sessions, the BTC/USD opened at around 386, but declined heavily in the later hours – following from the support level of 389 to resistance level of 381. The market was however supported lately by good actors, which ultimately brought BTC/USD in a consolidating trading range. The pair closed at 384 by the end of the day.
At press time, the BTC/USD is trading at 384 only and has dropped by 1% in the last 24 hours. We expect Bitcoin to stay in a consolidating range during the 2/10 trading sessions. If price moves upward, it might find the first resistance level at 400. In case of bearish movements, it might find support at 375.
Following the same chart pattern of Bitcoin, LTC/BTC opened at 1,115,580 satoshi during the 10/1 trading sessions, and went on to close at 1,151,670 satoshi. At press time, the LTC/BTC is being traded at 1,150,840 satoshi and has surged 0.2% in the last 24 hours.
Last 24 hours indeed displays a dumping activity in the Dogecoin market. The coin has lately enjoyed one of the best uptrends of recent months, thanks to its merge mining with Litecoin. But now it seems like traders are selling the coin, in the wake of its stability in recent days, taking no trends. Even in last 24 hours during the 10/1 trading sessions, the DOGE/BTC traded stably in the initial hours after opening at 103 satoshi. The trouble started somewhere after the fall in BTC prices, which lumped Doge as well, taking its value down to the low of 97 satoshi.
At press time, the DOGE/BTC is being traded at 91 satoshi and has fallen over 12% in the last 24 hours.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org