Bitcoin is showing some signs of bullish momentum, but low trading volumes worry analysts and investors.
Bullish Signs for Bitcoin
On April 18, Bitcoin closed above the 50-day simple moving average, which is a significant development. According to Scott Melker, known as 'The Wolf Of All Streets', this could indicate a positive shift in momentum. While the price corrected to $84,349, it remains above the average level of $84,202.
Low Trading Volumes
Despite the positive signals, Melker points out that low trading volumes may indicate caution among major traders. For instance, trading volume on major exchanges amounted to about 8,000 BTC on April 17, significantly down from last week's levels, which reached 26,000 BTC.
Price Outlook for Bitcoin
Given the current situation, Bitcoin will face resistance at the $85,000 level, corresponding to a long-term descending channel forming since its January all-time high. If trading volumes continue to decline, Bitcoin risks falling to the channel's midline at around $75,000.
Thus, while Bitcoin shows some bullish signs, low trading volumes pose a threat to the sustainability of its upward trend in the near term.
