Despite Bitcoin hovering near its all-time high, on-chain data from CryptoQuant shows that the market is not exhibiting signs of overheating, thanks to declining trading volume and a stable accumulation base.
According to CryptoQuant’s latest bubble chart analysis, which visualizes exchange trading volume trends, the market is currently in a cooling phase. The chart represents each asset by a circle, where size denotes trading volume and color reflects the rate of volume change.
Volume Trends Indicate Market Balance
The report outlines four key volume trend signals:
- Decreasing volume → Cooling
- Little to no change → Neutral
- Increasing volume → Overheating
- Sharp increase → Extreme Overheating
At present, the cooling signal dominates, suggesting that the price rally has not been driven by speculative excess or sudden inflows. This positions the market on solid footing rather than in bubble territory.
Breakout Requires Catalysts, But Foundation Is Solid
While BTC remains close to record highs, further upside may require macroeconomic triggers such as interest rate cuts or regulatory clarity, CryptoQuant noted. That said, the groundwork for a sustainable rally appears intact, with strong structural support and reduced speculative pressure.
“A strategy of patience, tracking major catalysts, and waiting for breakout opportunities seems promising,” the report concluded.
The takeaway? Bitcoin’s current pause reflects healthy consolidation, not weakness—offering investors time to prepare for the next leg of the cycle.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/bitcoin-market-cools-near-all-time-high-without-signs-of-overheating/