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Bitcoin price corrects below $45,000, trading volume declines, altcoin market falls

Cryptocurrencies are mostly lower today as falling volume suggests a pullback is near. Bitcoin price is trading around $44,993 at press time and is down about 3% over the past 24 hours.

bitcoin-price-corrects-below-45000-trading-volume-drops

BTC/USD 4-hour chart | Source: TradingView

Buyers could take profits as volume declines, Bitcoin price below $45,000

Some analysts are optimistic about the long-term recovery in crypto prices, although the pace of the upside will likely slow over the short term. While many technical and on-chain indicators confirm this rebound’s strength, it may still be early to say we are out of the woods.

The sad story is that it is still not known why BTC has dropped so much. Bitcoin is at its lowest percentage of discussion in 3 months, as all eyes have been on the significant altcoin surges that have been happening over the past month.

bitcoin-price-corrects-below-45000-trading-volume-declines

Source: Santiment

As previously reported by AZCoin News, the Fear & Greed index, once rising to the “Extreme Greed” threshold, will cause the market to correct.

bitcoin-price-corrects-below-45000-trading-volume-declines[1]

Crypto Fear & Greed Index as of August 18 | Source: Alternative.me

The Bitcoin Fear and Greed Index estimates the general feelings regarding the primary cryptocurrency by following several aspects. Consequently, the index was deep in a state of extreme fear with a low of 10 for numerous weeks after BTC started its USD descend in mid-May. However, the situation began to change after BTC bounced from its latest sub-$30,000 adventure. The index went into a state of Greed at and above 50 for a while. However, it has jumped into “Greed” once more now at 73.

Bitcoin’s trading volume on leading spot exchanges declined over the past week as the short-squeeze rally stalls. After the seven-day average real BTC trading volume pushed towards $7 billion last week, we’re now back to $5 billion.

If Bitcoin continues to trade higher on declining volume, it can signify an exhausted market, and it will probably not be a sustainable move. We want to see an apparent uptick in volume if the BTC price increases to $50,000 again.

bitcoin-price-corrects-below-45000-trading-volume-declines[2]

Seven-day average of bitcoin spot volume | Source: Arcane Research

Meanwhile, Ethereum is hovering at the $3,000 level right now, and behind the curtains, we’re seeing that network growth has been steadily rising this month. New addresses being created on the ETH network is a nice leading indicator of where prices move next.

corrects-below-45000-trading-volume-declines

Source: Santiment

Currently, most altcoins are seeing 4% – 8% drops on the day. The top 10 CoinMarketCap with Binance Coin (BNB) and Dogecoin (DOGE) recorded 6% and 8% declines on the day, as BNB fell below $400.

However, the AUDIO market cap surges past $1 billion. As AZCoin News reported, AUDIO price, the governance token of decentralized music streaming protocol Audius, nearly doubled in the past 24 hours, pushing its market capitalization above $1 billion for the first time. The price surge comes after Audius announced its partnership with the popular video-sharing app TikTok. At press time, AUDIO is changing hands at $2.81.

The overall cryptocurrency market cap now stands at $1.911 trillion, and Bitcoin’s dominance rate is 43.8%.

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