Bitcoin Eyes Key Resistance as Consolidation Phase Continues
Bitcoin's consolidation phase after its two-week gain of approximately 23% has analysts looking to key resistance levels for direction. The cryptocurrency recently traded above $81,000 before retreating below $77,000.
The broader market structure remains relatively healthy, but spot trading volume has declined 35% over the past week to $3.1 billion. Despite this drop, activity remains significantly stronger than it was before the breakout.
Average daily spot trading volume fell from an unusually active period during Bitcoin's two-week rally, according to K33 Research. The firm stated that 'despite the sharp decline from last week, volumes remain 48% above the July 1 to August 15 average.'
Bitcoin's short-term volatility has also declined as its price consolidates, with seven-day volatility falling to 1.6%, below the yearly median of 1.8%. Reduced volatility could allow the market to establish stronger support before its next directional move.