Matrixport Flags Bitcoin Short-Term Downtrend Amid Halved Trading Volume
Matrixport’s latest analysis identifies a clear Bitcoin short-term downtrend driven by a sharp drop in daily trading volume—from $352 billion to $178 billion—despite total crypto market capitalization rising from $2.4 trillion to $3.7 trillion over the past year. On-chain metrics point to weakening network activity, fewer transactions, and shifting holder behavior, signaling reduced liquidity and growing investor caution. Matrixport recommends a conservative investment approach during this downtrend, advising dollar-cost averaging, clear stop-loss levels, portfolio diversification and close monitoring of key support zones. Historical Bitcoin cycles show that short-term corrections can pave the way for future rallies, offering disciplined traders strategic entry points amid market volatility.
Bearish
Matrixport’s report of a near 50% collapse in Bitcoin’s daily trading volume, combined with weakening on-chain metrics and cautious holder behavior, signals a loss of momentum and liquidity—factors that typically exert downward pressure on price. In past cycles, similar contractions have preceded extended corrective phases lasting weeks to months, as traders reduce risk exposure. While historical recoveries often follow, the immediate impact is increased volatility and bearish sentiment, suggesting traders should brace for further short-term price declines, even if a long-term uptrend remains intact.