Here’s Why It’s Hard To Be Bearish In The Current BTC & Crypto Market
Here’s Why it’s Hard To Be Bearish In The Current BTC & Crypto Market
Last week, Bitcoin went above $5k, hitting $5,450 at one point. However, two days before the weekend, the market saw the much needed and anticipated correction where Bitcoin went down below $5k to about $4,925 level. However, except for this one level that was hit yesterday, the leading cryptocurrency remained above $5k, a high that was the last hit in November last year.
A correction in the market has been expected because of the strong move made by Bitcoin last week that took it straight from $4,100 to above $5k in a matter of an hour. This surge also scraped any expectations for a new low below December’s $3,200 to even as low as $1,800 as predicted by some analysts.
During this correction, some are expecting for BTC to go at least below $4k but according to experts, we might not get to see even $4k now.
Volume & Liquidity Continues To Grow & Set Records
According to the cryptocurrencies’ data analytics platform, DataLight, Bitcoin markets are now starting to “set record volumes” after last year’s bear market that has the flagship cryptocurrency reaching its all-time high at $20,000 in December 2017 to plummet its last year’s low to $3,200 in December 2018.
On April 3rd, when BTC sailed through $5k and the rally started, BTC reached its trading volume record. At the same time, liquidity continues to grow and set new records as well.
Most Buy Volume In Entire Crypto History
Volume is a significant factor in determining and moving prices. It is actually the number of contracts that are traded over a certain period of time.
Most importantly, volume precedes price and before the price of an asset moves the volume comes into play. Hence, increasing price with increasing volume confirms the uptrend. It is a healthy sign of a strong uptrend and is hence bullish.
Meanwhile, buying volume is the number of contracts that are associated with buying trades. And increased buying trades reflects stronger demand than supply that boosts up prices.
Pointing out this volume, crypto trader @MoonOverlord says the historic buy interest in cryptos is not only from the retail side but also from the institutions that are buying more BTC than ever.
“Crypto in the past couple weeks has seen the most buy volume in it's entire history. Hard for me to be bearish or try and fade this rally.”
The total trading volume as per Coinmarketcap is $172.7 billion while Bitcoin is registering $11.8 billion. However, after Bitwise’s report that claimed that more than 95 percent volume is fake, it may be hard to agree with CMC’s volume but the record volume registered by CME in this week is real and paints a bullish picture.