Bitcoin has been following the stock market price for price since late January of 2020 which is concerning since bitcoin should be treated as a currency and not a security; the stock market at all time highs followed by bitcoin at all time highs is not a coincidence. We can do our best to make price targets for bitcoin using technicals and fundamentals but at the end of the day; the stock market is going to control the bitcoin price. If the stock market dumps in 2021; you best believe 75,000 Bitcoin price target will be out of the window.
Bitcoin currently has a-lot going for itself with Paypal and Tesla both getting into it however like I showed the volume, there is just not many people trading bitcoin currently which tells us 2 schools of thought; either most traders are holding or not many people are buying bitcoin. It is quite concerning since the volume is 1/3 to what we saw in 2017. You might ask "wouldn't the volume pick back up?"; yes, it could however volume being such low over a 810% move up isnt necessarily good, which leads me to think; Who is really moving the market?
There are a lot of hodlers, and the volume decrease indicates this, so it's more of a supply/demand issue. As in any market, the marginal buyers/sellers are moving the price, so if there is less BTC available for sale and there are more buyers, the price rises. Note that the declining absolute number of buyers doesn't necessarily indicate trouble, as the majority of BTC might be doing nothing or simply selling to satisfy tax obligations on realized gains.
As an aside, Coinbase is indicating that 2/3 of the accounts held in their wallets which have traded over the past 24 hours have increased their BTC positions, while 1/3 have decreased. Same for ETH.
UnknownUnicorn1256641
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@theworldinscents, Thanks for pointing that out, didnt think of it as marginal buyers/sellers.
As an aside, Coinbase is indicating that 2/3 of the accounts held in their wallets which have traded over the past 24 hours have increased their BTC positions, while 1/3 have decreased. Same for ETH.