Image by: Ussama Azam – Unsplash
Bitcoin seems poised for downside volatility during today’s trading session if the bears can break current support. However, price action has been slow as all major narratives, including those of macroeconomic forces, have lost strength.
As of this writing, Bitcoin is trading at $29,300 with a consistent sideways movement. Low volatility has suppressed BTC’s price action, a status quo that could remain in place until macroeconomic forces come back into play in September.
BTC price is moving sideways on the daily chart. Source: BTCUSDT trade view
BTC price is moving sideways on the daily chart. Source: BTCUSDT trade viewNassim Taleb hits Bitcoin again
Meanwhile, Bitcoin critics are using the drop in volatility and trading volume to bolster their arguments against the cryptocurrency. The latter includes Wall Street operator, professor and author Nassim Taleb.
Through his X account, Taleb showed his nearly 1 million followers the following chart, which indicates the Bitcoin price and the drop in trading volume. Using the chart and metric as a proxy to measure Bitcoin adoption, Taleb explained:
When I said that people lost interest in Bitcoin, it was because of the following reason: BTC volume is slowly disappearing and is down more than 85% from the peak. As the volume drops, manipulations become easier, but at some point the manipulators will have to get out. This is how Open Ponzis implode.
BTC trading volume has been declining since 2020. Source: Nassim Taleb on X
BTC trading volume has been declining since 2020. Source: Nassim Taleb on XThe chart above shows BTC’s declining trading volume since 2020, when the cryptocurrency rallied, taking it from a low of around $3,000 during a “black swan” event, the COVID-19 pandemic, to an all-time high of $69,000 led.
Back then, BTC and the crypto market were in a “crypto winter” with falling prices for years, similar to today. As the sector rallied, many jumped into the action, sending trading volume to an all-time high.
In this sense, Taleb seems to indicate that after a price increase with low trading volume, which often leads to a drop, there will be a downward trend in the price of the cryptocurrency.
A crypto investor tried to show Taleb a different version of the chart above, dating back to 2014 when the cryptocurrency was trading just above $100. The user pointed out that BTC has experienced periods of volatile volumes as the cryptocurrency has become a mainstream asset.
However, Taleb dismissed the user with the following words:
Idiot, if you knew how to read the chart, you would only now see a price increase WITH a decrease in volume.
The author of Black Swan was a bitcoin critic who likened the cryptocurrency to a “cult” and predicted that the sector would eventually “disappear.”
Cover image on Unsplash, chart by Tradingview
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