Bitcoin has had an outstanding run this year already and the last month has been interesting to see if it was going to Correct or Consolidate from here. Some analysts have been concerned that we might see another Blow Off Top because indicators were showing Bitcoin was seriously Overbought in March and Mania looked to have taken over the market. However one indicator that I use which suggests otherwise is the Volume of trade...
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Looking at the Bitcoin chart over the last month you can clearly see that Volume is higher at the Lows and NOT the Highs. Normally with a Blow Off Top you'd see the opposite because Mania pushes the market to fresh highs and the selling pressure at the top comes in hard. What I am seeing here on this chart tells a different story.
This chart says to me that Bitcoin was a little bit exhausted by it's recent charge and has needed a bit of a rest. You can see at the highs (especially at the start of April) the volume has dropped right off. After the volume dips the selling pressure has come but it's the Buyers who have come in harder at those lows and supported the price. We are again seeing a good price move today so the little rest for Bitcoin (and the rest of Crypto) might already be over, though we might need to see a bit more Consolidation before making fresh highs. Very encouraging signs I think.