Despite the most recent relief on the cryptocurrency market, traders and investors are not rushing in and remain cautious, according to the volume indicator, suggesting that there is no buying power present on most centralized exchanges.
The volume profiles between June 18 and June 24 remain descending despite the price facing and moving upward. Such a divergence might be a worrying sign since it suggests that the current short-term really is nothing but a short-term correction, which will lead to the continuation of the downtrend.
The same volume pattern prevails on intraday charts like the four- and one-hour timeframes, suggesting that Bitcoin has no support from both speculative traders and investors.
Is it really that bad?
The total absence of buying power could be a worrying sign for investors who bet on the upcoming reversal following Bitcoin's return above $20,000, but there is no source of inflows left on the market because of massive liquidation volume and margin calls that institutions received during BTC's plunge from $30,000 to $17,000.
A total disaster among institutional investors pushed them away from the market, and only a prolonged consolidation may attract more investors in the future, as it would mean that the market has stabilized and may offer positive returns in the future.
In addition to technical and market issues of the cryptocurrency industry, the hawkish sentiment of the Fed will most likely create constant pressure on risky assets like cryptocurrencies and tech stocks.
At press time, Bitcoin is trading at $20,900 and is failing to gain a foothold above $21,000.