Bitcoin Spot Price Finds Stabilization, Possible BTC Bottom, But What’s it Have to do with BitMEX?
Since Bitcoin hit its yearly low in December-2017 at $3,200, it has been trading between the range of $3,400 and $4,200 with a gap of about $800 only. The leading cryptocurrency has been trying to make its way upwards in both January and February but failed to really climb and slid down on both the occasions.
Sitting at $3,940 with 24-hours gains of 0.52 percent, as per the data provided by Coinmarketcap, Bitcoin’s daily trading volume is slowly moving upwards as it registers $10.72 billion.
Bitcoin price chart, Source: Coinmarketcap
The trading volume has been seeing a surge since the last two pumps came in February. Though it did go down, the upward movement has been there.
As Joe McCann points out, the trading volume is rising signaling the accumulation period in the market after going through the distribution phase the past year.
— Joe McCann (@joemccann) March 7, 2019
Now, crypto analyst, Rptr45 points out that this level of stabilization could be the effect of the past 3 months’ bitcoin volume being in the bottom.
“Perhaps it's no surprise that BTC 90D realized vol is in the bottom ~12% of observed periods and it seems as if we've found a level of stabilization in spot prices as Joe McCann pointed to the other day.”
“If we take a look at the Bitmex Insurance fund as a proxy for Bitmex (not perfect) there are some cracks in the armor forming. It was impossible not to notice the increased systematic importance of Bitmex leverage on BTC (and therefore everything else) trading last year.”
However, in the last 3 months, the notional Bitcoin added has been the worst ones since November 2016 to January 2017 which he says:
“corresponded in what has been minimal leverage on Bitmex as indicated by the average / median funding rates over the past 3 months…what's notable is the lack of dispersion and daily highs <0.03%.”
— Rptr45 (@Rptr45) March 8, 2019
Despite this, Raptr45 cautions, correlation does not mean causation but he quips:
“wouldn't be surprised if King Arthur Crypto Hayes has robbed all his casino goers blind that there's no one left to sit down at the table…which is definitely healthy for those that want to see a market move higher.”