Bitcoin, volume collapsed, but is it a 'rebound'?..."The less interest, the closer to the bottom"

▲ Bitcoin (BTC)/AI Generated Image

Bitcoin (BTC) trading volume is decreasing along with its price, amplifying short-term bearish signals. While this trend indicates weakening demand and decreased market participation simultaneously, analysis suggests that low-volume periods historically appeared just before major bottoms in past cycles.

NewsBTC reported on May 23 (local time), citing technical analysis from CryptoCon, that the Bitcoin Volume Strength Indicator is approaching the low-volume zone that marked past cycle bottoms. This indicator tracks the relative strength of Bitcoin's on-chain trading activity compared to its price history.

According to CryptoCon's analysis, Bitcoin's Volume Strength is compressing towards the low-volume zone that marked the end of long-term bear markets. In 2015, 2018, and 2022, major bottoms formed after the Volume Strength indicator entered this zone.

An interpretation was also presented that a decrease in trading volume cannot be simply viewed as a negative factor. According to the article, trading activity surged during past market overheating periods. Near the peaks of 2017, 2021, and 2025, market participants flocked, increasing trading volume, while conversely, low-volume periods, where interest waned, coincided with cycle bottoms.

However, CryptoCon believes that Bitcoin has not yet entered a definitive cycle bottom. He explained that "close" is different from "confirmed." In 2014, Bitcoin spent 10 months at similar channel levels, and current data also does not yet show the final consolidation phase seen at past long-term bottoms.

The short-term price trend was assessed as still vulnerable. According to the article, Bitcoin dropped 3.7% in the past 24 hours and was trading at $74,520 at the time of writing. When price decline and volume contraction occur simultaneously, it can be interpreted as a sign that buying pressure has not been strong enough to reverse the trend.

NewsBTC stated that if Bitcoin enters the low-volume zone more deeply and this trend continues sufficiently to confirm selling exhaustion, a structure close to a cycle bottom could form within a month. Currently, Bitcoin remains in a phase where downward pressure and volume contraction need to be confirmed before a bottom can be confirmed.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*