05 Jun 2018 Pavel Petrov
Tough June Start for Bitcoin, Stepping Just Above the $7,000 Mark
This fluctuation attracted the attention of CoinDesk’s crypto market analysts, who believe that the low trading volumes will lead to a "bull trap".
Between the 6th and 21st May the leading cryptocurrency broke through the descending trendline, sending a positive message to its traders last Tuesday. However, the daily trading volume marked a $4.85 billion fall.
At the moment, the 24-hour exchanging volume shows $4.95, shaping a 22.5% decrease in the present quarterly average of $6.38 billion.
The low volume is a clear sign to the market analysts that the increase of Bitcoins price will stay at $7,800 for a limited time. The coin’s exchange value on the 4th of June was $7,591 on Bitnex, marking a 2% decrease of its value at the closing of the 3rd of June.
CoinDesk stated that the decrease in exchanging volume in the last week questions the sustainability $7,040 on the 29th May to $7,779 on the 3rd June rally.
The 4-hour diagram indicates volumes are regaining strength as the value fell back to $7,549 from a high of $7,764. This may demonstrate the likelihood of a fall back to last week’s low of $7,040.
Today the market saw another drop in the Bitcoin price curve, starting at trading a $7,711.36, closing the day at $7,490.49, with a peak of $7,754. Although this suggests a test of the $8,000 mark, volumes remain low, leaving analysts keeping a close eye on the coin and waiting to see if it will reach a $7,040 level for a bull trap.