Bitcoin spot trading volume has not seen a significant rise, continues to rebound and faces resistance.

Bitcoin’s rally has slowed in the past 24 hours. Bittui terminal data shows that as of press time, the price of Bitcoin was about $47,026, 24-hour drop of 1.46%. On-chain data shows that Bitcoin’s total daily transaction volume peaked on March 16, when BTC crossed the $40,000 mark. But after that, the spot trading volume did not show a significant rise, but fell back to the three-month average.

“Daily volume” is a measure of the total amount of bitcoin changing hands on any given day. When the indicator value rises, it means that more tokens are now being traded on-chain. This trend shows that the market has become more active as investors become more interested in cryptocurrencies. On the other hand, a decline in this metric indicates that the Bitcoin network is becoming less active, a trend that could mean that investor interest is waning.

Bitcoin trading volume has seen a small increase over the past 7 days. However, despite the increase, the value of this metric remains low on a longer time dimension, suggesting that there are not many traders currently participating in the network.

During periods of low trading volume, there are not many traders buying and selling Bitcoin. In general, however, any large price movement attracts more investors, thereby maintaining market momentum. The latest rally that pushed BTC’s price above $47,000 failed to attract any significant volume, so this rally may not be sustainable.

As of 9:00 PM on March 29, 2022, Beijing time, the total BTC transaction volume was 145,348 BTC, and the net flow in the past 24 hours was -1.299 billion USD.

Big money buying may be the driving force behind this rally. BitTui previously reported that the Luna Foundation Guard (LFG) has purchased 5,773 BTC this week, worth $272 million. MacroStrategy, a wholly-owned subsidiary of MicroStrategy (MSTR), has secured a $205 million bitcoin-backed loan from Silvergate Bank.

“Understandably, buying pressure from MicroStrategy and Luna Foundation Guard has fueled a strong uptrend in the short-term,” analyzed digital asset trading firm GlobalBlock.

Jason Deane, chief bitcoin analyst at Quantum Economics, said: “MicroStrategy and Terra have put their buying on hold, which could be a simple period of calm, but it could also be a simple period of consolidation after an eight-day run. If it’s a consolidation, these are usually Considered a bullish indicator as it gives the market time to build a new base upon which further price discovery can be made.”

Indicating bullish sentiment among crypto traders, the Bitcoin Fear and Greed Index entered “greed” territory, with the index at its highest level of the year but still below the “extreme greed” peak of last November. This suggests that investor sentiment has room to improve further and that bulls need to regain momentum to test the upside further. Arcane Research reminds investors: “Market participants should remember that every time we showed the slightest sign of greed this spring, the market was pulling us back to a dire state”.

At press time, Bitcoin is hovering around $47,300, up 12% over the past seven days and 26% over the past month.

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