Bitcoin price dips below support level amid growing trading volume

Bitcoin buyers have been unable to sustain the momentum picked up by the world’s first and largest cryptocurrency over the weekend. Against the norm of price slump on weekends and bullish gains on weekdays, Bitcoin is trading at a loss of 4.84% to $33,696.19. Over the past 24 hours, BTC changed hands at a high price of $35,937.57.

Push for new regulations

The talk on the embrace of Bitcoin and cryptocurrencies in general remains a polarizing subject amongst regulators around the world. While China has maintained its stance thus far by banning all crypto related activities, countries like Iran are now exploring avenues to regulate the digital currency space after much hassle to trail China with bans.

The stalemate in deciding the relevance of Bitcoin amongst US regulators is beginning to fizzle out as stakeholders from key US states including Wyoming, Texas, and Miami are wooing Bitcoiners to their respective regions.

These fundamentals have a longer term influence on Bitcoin, however, these are yet to pan out per current price performances.

On-chain trading volume remains positive

The reduction in valuation has no bearing on Bitcoin’s on-chain activity which largely remains on the positive side. Bitcoin believers continue to perform transactions as depicted by the rise in the trading volume by 6.95% to $27.18 billion. 

As shown in the 4h BTC/USD chart on TradingView, BTC is trading below the key support level at $34,000. While the ongoing buying activities are imminent, the momentum as seen on the bullish candlestick is weak to maintain a forceful spike back to the 7-day high of $36,542.11 in the next few days, the current activities can help forestall a steeper downtrend.

In the short term, Bitcoin price can retest a low down to $32,000 and a likely reversal to retest the $40,000 resistance point.

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