Bitcoin exchange volume hits all-time low – what this means for BTC price

Followin' the public account: Lazy King Squirrel BTC has experienced significant price volatility in the past few days, largely influenced by macroeconomic developments and market fundamentals. After the Federal Open Market Committee (FOMC) meeting and a speech by Federal Reserve Chairman Jerome Powell, the price of BTC plummeted below $99,000. However, the leading crypto quickly rebounded, rising to $104,000 earlier today, and then stabilizing at $100,573 at the time of writing. This means a 3.4% drop over the past day, with a market cap shrinkage of around $67 billion. To learn more about the crypto world and get the latest news, feel free to add me to the group; QQ: 3786051908 or follow the public account: Lazy King Squirrel, we have the most professional community, releasing daily market analysis and recommendations of high-potential coins. Exchange trading volume hits a historic low Under this price performance, CryptoQuant analyst Woominkyu provided insights into BTC's market activity, highlighting the decline in exchange trading volume. Woominkyu stated that historical data shows a correlation between surges in trading volume and significant price fluctuations. For example, peaks in exchange trading coincided with the substantial BTC price increases in 2017 and 2021. However, recent data shows that both spot and derivatives exchange trading volumes have declined significantly, reflecting a decrease in trading activity compared to previous years. The CryptoQuant analyst believes this decline may indicate "a weakening of market participation," suggesting a "period of consolidation or reduced volatility" in the short term. BTC key support levels and technical insights The market intelligence platform IntoTheBlock revealed an important support area formed below the $100,000 mark. The platform's shared data shows that over 1.45 million BTC have been accumulated at an average price of $97,500. This accumulation has established an important demand zone that could serve as a "buffer" to prevent further price declines. The significance of this level lies in its ability to provide a foundation for price stability, especially during the current market adjustment phase for BTC. Some believe that a breach of this area could trigger further downward pressure, while maintaining above this zone could strengthen the recovery momentum. From a technical perspective, market analyst Satoshi Wolf's insights highlight the critical nature of BTC's current price level. The crypto recently tested the $100,000 support, which coincides with the 100-day exponential moving average (EMA). This level is crucial, as it combines technical indicators and psychological significance. The moving average convergence divergence (MACD) indicator shows bearish momentum, while the relative strength index (RSI) is approaching the oversold region, suggesting a potential price reversal. Wolf suggests that traders should monitor whether the price confirms a breakout above $104,000 or a drop below $100,000, with trading volume being the key to verification.