Bitcoin Surges Fast Above $8,450 But the Move Lacks Volume
- Bitcoin moves to $8,475 level but trading volume is around $820 million only
- Venture Capitalist warns of a “coming supply shock in 2020″
Bitcoin price is climbing up fast as in that past 24 hours it has surged 3.06 percent while trading at $8,434 at the time of writing.
Today, Bitcoin moved in the range of $8,174 and $8,475 which is a good development from the last few days when we were struggling to cross $8,000 level. The last time we were on this level was on June 3rd, 2019.
Though the price is something to be confident about, what puts a damper on the things is the trading volume which hasn’t moved much. According to Messari’s Real 10, 24 hours volume, Bitcoin is currently managing the daily trading volume of $826 million which was keeping steady at $750 million during the last few days.
Per Coinmarketcap, currently, the volume traded is $19.3 billion in comparison to $16.6 billion on June 9th when BTC price was at $7,900 level and $25.9 billion on May 19th when Bitcoin was trading at $8,350.
Trading volume is of importance as it can help an investor identify the momentum in a stock or asset and confirm a trend. Increasing price and decreasing volume show lack of interest and is a warning of a potential reversal.
This is because the price rise or drop on little volume is not a strong signal. So, we could very well be in a bull trap.
Get ready for a “Supply Shock”
In the short term, a retracement could very well be seen, however, in the long term, the bitcoin reward halving in May 2020 has the community excited. Now, a US venture capitalist is also praising this “exciting” progression of Bitcoin while warning for a “supply shock.”
“What I think might be happening is an anticipation of a coming supply shock in 2020,” Alyse Killeen, managing partner of StillMark Capital told Bloomberg. “In 2020 we'll have just half the daily supply of bitcoin that we do now.”
A historically bullish event, Bitcoin halving event occurs every four years and in 2020 we will be witnessing the third such event. In 2012, after November halving, BTC price climbed an ATH of $1,000 that after 2016’s halving skyrocketed to $20,000 in December 2017.
“While we're looking ahead to this supply shock and halving event, we're also seeing greater demand for bitcoin and new on-ramps for more familiar and conventional sources. There's the anticipation that there will be a broader group of users and consumers who have an appetite for bitcoin,” Killeen said.
This also `has everyone anticipating the new peak BTC would hit this time.
Bitcoin’s price is $42,694.50 BTC/USD exchange rate today. The real-time BTC market cap of $798.95 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $29.04 Billion and live coin value change of BTC -1.02 in the last 24 hours.