Ibahagi ang artikulong ito
Bitcoin's Low Volume Breakout Could Be a Bull Trap
Bitcoin looks primed for a move to $8,000, but low trading volumes point to the risk of a bull trap.
Bitcoin looks primed for a move to $8,000, but low trading volumes point to the risk of a bull trap.
The cryptocurrency broke through a key descending trendline (drawn through the May 6 high to the May 21 high) on Sunday, adding credence to last Tuesday's bullish outside-day candle and signaling a short-term bearish-to-bullish trend change.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
However, at the same time, daily trading volume fell 1.77 percent to $4.85 billion, according to CoinMarketCap. Further, rolling 24-hour trading volume currently stands at $4.95 billion – down 22.5 percent from the current quarterly average of $6.38 billion.
Low volume is a cause for concern for the bulls, as it is widely considered a sign that the market is approaching a peak; that is, the rally will be short-lived.
Hence, a slight pullback seen today does not come as a surprise. At time of writing, the cryptocurrency is trading at $7,591 on Bitfinex – down 2 percent from the previous day's (UTC) close of $7,718.
Daily chart
The bullish outside-day candle followed by a bullish crossover between the 5-day and 10-day moving averages (MAs), and an upside break of the falling trendline, indicate scope for a rally to $8,000.
However, the decline in trading volume over the last seven days puts a question market on the sustainability of the corrective rally from $7,040 (May 29 low) to $7,779 (Sunday's high).
4-hour chart
On the 4-hour chart, trading volume has picked up as prices fell back to $7,549 from the high of $7,764.
The anemic trading volume during the price rally and the later increase in trading volume during negative price action indicates a high probability of a downside break of the rising wedge pattern. In such a case, bitcoin risks falling back to last week's low of $7,040.
View
- The upside break of the falling trendline has opened the doors for a rise to $8,000. However, low volumes may indicate a false breakout.
- A downside break of the rising wedge seen in the 4-hour chart would allow a drop to $7,040.
- Only a high-volume break above $7,700 could yield a sustainable rally to $8,000.
Trapped businessman image via Shutterstock
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
Di più per voi
LUNC Surges Over 160% in a Week as Do Kwon Sentencing and Token Burns Draw Traders
The rally is driven by speculation that a final verdict could bring clarity to the project, as well as technical factors like token burns.
Cosa sapere:
- Terra Classic (LUNC) surged 74% to $0.0000072, up 160% in the past week, on exploding trading volume, ahead of Terraform Labs founder Do Kwon's sentencing on Dec. 11.
- The rally is driven by speculation that a final verdict could bring clarity to the project, as well as technical factors like token burns, with 849 million LUNC destroyed in the past week.
- The token's momentum is also fueled by Binance's pause on LUNC withdrawals ahead of the Terra Chain's v2.18 upgrade, which aims to improve network stability, despite the token remaining volatile.
Top Stories
