10x Research: South Korea's Cryptocurrency Trading Volume Drops from Peak of $25 Billion to $6.6 Billion, Bitcoin Key Support at $95,000

BlockBeats News, December 9th, 10x Research released an analysis stating that as the Christmas holiday approaches, the market environment has become more cautious, and the risk of expanding sideways consolidation has also increased. Retail trading volume has significantly decreased, for example, cryptocurrency trading volume in Korea has dropped from a peak of $250 billion to the current $66 billion.

Likewise, Binance's spot trading volume has decreased from $600 billion to $240 billion, indicating an overall loss of momentum. Given these trends, now is a prudent time to reduce leverage, consolidate positions, and focus on high-conviction core assets.

Historically, when the Bitcoin price reaches four times its total cost basis (MVRV ratio), it usually triggers a large-scale profit-taking, marking the peak of a bull market. Currently, the MVRV ratio is at 2.7 times, which we refer to as the "mid-cycle peak," at this stage, many investors start considering taking profits.

In the past four instances, three times Bitcoin entered a consolidation phase when it reached this level, with the only exception being the 2020 DeFi summer bull run. Earlier this year, in March 2024, a similar scenario of significant profit-taking occurred when the MVRV ratio reached 2.7 times, and this memory is still vivid.

For Bitcoin, a key support level is at $95,000. If it breaks above $100,000, this might present a strong buying opportunity, but if it falls below $95,000, traders should proceed with caution and manage risk carefully. To navigate this market effectively, traders should stay away from weaker sectors and focus on core high-conviction positions.