The chart above shows Bitcoin on the left and the Total Crypto Market Cap on the right. Notice the arrows pointing in different directions. The arrow pointing up on Bitcoin’s chart shows volume is rising, but the arrow on the Total Market Cap chart points down, showing volume is dropping.
Altcoin volume is at major lows; for some altcoins, it is at historical lows – but Bitcoin’s volume is rising. In Your Babies First Book on Technical Analysis (not a real book, if you couldn’t tell), you would learn that technical analysts believe that volume precedes price. In other words, if volume rises but prices are flat or continue to slide lower, there is a high probability of price reversing direction.
If stocks and other risk-on markets experience an explosive dead cat bounce, Bitcoin and the broader crypto market will likely follow suit.