- Bitcoin spot exchange volume on a continuous decline.
- Bitcoin dominance has also bottomed at 38% and currently above 43%
Bitcoin price dipped below $35,000 today currently trading at $34,135 with a 7% price decline over the last year. The price of top cryptocurrency is currently moving between $30k-$40k after the recent market correction, however, on-chain data indicate that Bitcoin price might be nearing its bottom as traders gear up for another bull rally. The spot volume for the top cryptocurrency is on a continuous decline even when the price of BTC has fallen 50% from its ATH.
A declining spot trading volume is often seen as a bullish sign for the Bitcoin market as traders often move their holdings out of the exchanges in anticipation of a price surge. While spot volumes are on a continuous decline the derivative exchange volume is on the rise again which is another sign that traders are confident about trading with leverage.Before the current market mayhem, Bitcoin was on a record-setting spree and hit a new ATH every month since the start of 2021. The consolidation phase after each ATHs became longer but there was no sign of Bitcoin price reaching a potential top even after the recent 50% drop from the top. Analysts have pointed towards multiple corrections of over 50% during the previous bull cycles.
Is Bitcoin Bottom Round the Corner?Every bull run comes with a price shakeup to clear the froth created by over-leverage trades to clear weak hands. The recent market correction was one of them after nearly 5-6 months of continuous rise. The on-chain analysis suggests the market sentiment is currently neutral and we may be nearing a bottom before a move up.The bitcoin dominance also bottomed at 38% and has been on a continuous climb since then currently above 43.5%. With the Biden administration announcing another $6 trillion package to recover the economy, Bitcoin price benefits from the flow of money in the crypto market.