Recent analysis by Skew Markets shows that Bitcoin trading activity has seen a significant drop over the weekend, a change sometimes visually noticed by traders, showing a clear weekly trading bias in the crypto market.
Transactions and on-chain activity are skewed
While the market is always open, BTC transactions and even on-chain activity can vary greatly from week to week. But trading volumes fell markedly over the weekend, providing an opportunity to influence market prices amid relatively low trading activity.
Generally speaking, the trading volume of BITMEX has been quiet in recent weekends, and the overall trading volume has dropped by about 50%.
Not only the market, but the Bitcoin network also experiences periods of reduced trading volume on weekends, and this particular pattern reveals a market dominated by retail investors, with weekly breaks.
Sunday night is usually a pivotal moment for BTC, with Asian markets reaching highs in the early hours of the session. After that, there is a noticeable sell-off on Monday or Tuesday and mid-week. On certain weekends, BTC also experiences a clear trading pattern known as “Bart Simpson,” when the price climbs on Fridays, remains high and steady over the weekend, and then falls on Mondays.
But now, there are more ominous signs, as Bitcoin’s reduced activity over the weekend has not been enough to bring bulls together. That said, the bulls were completely unable to stage any type of rally over the weekend, which does not bode well for BTC in the short term.
BTC sentiment remains shaky
BTC is very volatile, with fluctuations of hundreds or even thousands of dollars within a few days, and it is difficult to predict the daily trend. Analysts believe that the weekend is a sufficient period to determine the trend and signal of BTC. Therefore, consideration of weekend bias is included in price signals and forecasts.
The Bitcoin network also shows its activity through the volume of outstanding transactions (congestion), which last Friday was around 2,400, which is a relatively low amount of congestion. On a high transaction day, with more than 20,000 transactions waiting to be included in a block, BTC network activity tends to increase before transaction volumes increase and prices can skyrocket.
The original text comes from bitcoinist, compiled by the BluemountainLabs team, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
The original text comes from bitcoinist, compiled by the BluemountainLabs team, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
