The market decline in trading activity
Bitcoin continues to consolidate in a narrow trading range. The price chart stays below $3,453 at the moment. Yesterday’s attempts to overcome the key resistance level were not successful. Other cryptocurrencies behaved in the same way. Ethereum (ETH) shut down at around $104. Litecoin (LTC) showed a positive trend – it is trading at $33.84 with a change of +0.08%.
The capitalization of the cryptocurrency market is steadily declining; the figure is currently holding at $111 billion. This is a strong signal that there is not enough money on the market to buy coins. Therefore, we expect a continuation of the decline in trading activity in the near future.
Despite the decline in trading activity, analysts predict the growth of transactions in the Bitcoin network. A well-known resource transactionfee.info announced to the public that the number of transactions leveled off with January of last year. “Digital gold” was worth about $20,000.
Bitcoin along with the US dollar demonstrates the versatile dynamics of trading in a narrow price range. We can say that local support at the level of $3,413 is holding the popular cryptocurrency back. In case of steady growth and breakdown of the nearest level, the perspective of consolidation in the trading framework of the last week will appear.
Despite the growth of the fundamental component in the cryptocurrency market, weak trading is observed.