Bitcoin and Ether Continue Downward Slide for Fourth Day, Altcoin Trading Volume Surges

Bitcoin and Ether prices decline for the fourth consecutive day, while less popular altcoins experience a significant increase in trading activity, reaching double their average volume.

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Bitcoin and Ether continued to decrease in value for the fourth day in a row, reducing some of their gains from earlier in the year (66% for Bitcoin and 53% for Ether). However, a few lesser-known altcoins experienced a rise in price accompanied by a significant increase in trading volume on Tuesday.

Bitcoin seems to be finding stability within a certain price range, with support levels hovering around the $27,500 mark. The Visible Range Volume Profile (VRVP) tool indicates that there has been substantial trading activity between the price levels of 28,000 and 27,400. These price levels, known as “high volume nodes,” often act as points where price movements may pause, as they indicate significant agreement between buyers and sellers based on past trading patterns.

Between 26,700 and 25,000, there are price levels with lower trading activity, known as “lower volume nodes.” These areas indicate a decreased level of agreement between buyers and sellers based on past trading patterns. As a result, prices in these areas have the potential to decline rapidly.

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Image Source: “coindesk”

A decline into this latter range would mean a few things for bitcoin:

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  1. The current support level will be breached in a downward direction.
  2. Bitcoin’s price will have fallen below the lower range of its Bollinger Bands, which is generally seen as a bearish signal.
  3. The next significant price level with higher trading activity in the downward direction is around $23,950, which is approximately 14% lower than the current prices.

It will be important to monitor whether the difference between the upper and lower bands of Bitcoin’s Bollinger Bands widens, as this would suggest increased volatility and, in this situation, a potential risk of prices declining. On Wednesday, the spread between the upper and lower bands of Bitcoin’s Bollinger Bands increased by 5% after seven consecutive days of decreasing.

Over the past week, the difference between the upper and lower bands of Ether’s Bollinger Bands has been decreasing, with the latest decline being around 3%. This decrease in volatility aligns with the presence of significant trading activity levels, known as “high volume nodes,” at the price of $1,811. This suggests that there is potential near-term support for Ethereum (ETH) prices at that level.

While most digital assets experienced declines, lesser-known altcoins such as Litecoin and Bitcoin Cash stood out with gains of over 3% and 10% respectively in the past 24 hours. Additionally, the trading volume of these assets more than doubled their average levels over the past 20 days.

The trading volume of Cosmos’ ATOM token, a smart contracts platform, and Filecoin’s FIL token, a decentralized network, experienced a significant increase. This surge in activity is likely connected to congestion issues on the Bitcoin and Ethereum blockchains, prompting investors to seek alternative options.

However, the sudden increase in trading volume could be a result of a correction or reversal of the significant downward movements that occurred on Monday.

Author

  • SHBAZ

    A crypto enthusiast, Loves to write, Loves to explore and stay up-to-date about the latest developments in the crypto world. #Btc #Crypto #NFT

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