Market analysts say the current environment resembles previous pre-breakout periods with tightening price structures that often precede major moves.
Crypto News
Crypto spot trading activity has fallen sharply this quarter, with volumes down 66% from January's peak as traders step back amid softer ETF inflows and an uncertain macro backdrop. Bitfinex noted in a Sunday post on X that the slowdown mirrors periods seen in earlier market cycles where extended lulls often precede the next leg in the cycle.
Thirty-day crypto spot volumes have slipped from over $500 billion in early November to roughly $250 billion this week, according to data from CoinMarketCap. Trading activity struggled to stay above the $300 billion to $350 billion range throughout late November and early December, with several sessions sliding toward $200 billion, levels not seen in months.
The decline followed a brief spike in mid-November when volumes exceeded $550 billion before retreating quickly. Market analysts say the current environment resembles previous pre-breakout periods with tightening price structures that often precede major moves.
Michaël van de Poppe noted a tightening price structure in Bitcoin in a recent post on X, saying major macro events in the coming week could drive a surge in volatility. “Bitcoin holds above this crucial level, but I am sure we will start to see volatility pick up significantly over the course of the next days,” the analyst stated.
He pointed to key levels at $89,000 and $92,000, arguing that a break above resistance could accelerate a move toward $100,000 before 2026, while losing support risks another retest of lower ranges. The price action suggests traders are waiting for clear directional signals before committing fresh capital.
Bitcoin briefly climbed to $94,330 early in the week, lifted by Strategy's $962 million purchase, its largest Bitcoin investment since mid-2025. However, momentum faded quickly as traders awaited the final Federal Open Market Committee meeting of the year.
The Federal Reserve delivered a widely expected 25-basis-point rate cut on Wednesday, giving markets a short-lived boost before sentiment cooled again. According to CoinEx analyst Jeff Ko, the move offered little upside because it was already priced in, limiting the impact on crypto markets.
The combination of falling volumes and consolidating prices suggests markets are building energy for the next major move. Historical patterns show that similar quiet periods often preceded significant breakouts in previous cycles, though the direction remains uncertain until key resistance or support levels are broken.
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