Latest Look at Bitcoin Trading Volume Could be Leading Indicator of an Impending Crypto Market Bull Run
As Bitcoin keeps on maintaining stability around $6,500, Bitcoin trading volume took a surge from $3.2 billion last week to $3.8 billion today.
Meanwhile, people are feeling bullish about the market, expecting it to start off a rally soon. Matty Greenspan, the senior analyst at eToro stated:
“A strong breakout above the 200 Day Moving Average could easily flip sentiment from bearish to bullish for many crypto traders.”
$BTC is nearing apex of this consolidation pattern, hopefully we see a break upwards in the next day or two.
— The Crypto Dog📈 (@TheCryptoDog) October 9, 2018
One positive element in the price trend of Bitcoin throughout the past 30 days is that the digital asset has achieved five consecutive higher lows, which generally indicate a positive short-term price movement.
If the volume of Bitcoin can continue to recover and potentially break out of the $3 billion mark, it is highly likely that the asset’s demonstration of higher lows will allow it to engage in a strong short-term price movement, possibly to $7,000.
For a while, Bitcoin has been showing signs that it is ready to grow once more. However, the trouble once again lies with the market, which has followed a recent drop in bonds and stock markets. In the meanwhile, experts warn that the market is still not done with the new correction. A lot of experienced crypto traders have joined the discussion as well, claiming that Bitcoin has demonstrated more than decent stability in the recent weeks. To them, this is a clear sign that an upside movement is more than likely in the days to come. However, before this happens, BTC will have to wait until the new market crash blows over.
Don Alt, an experienced trader, predicted this drop recently by stating that the change in the market’s stability might arrive as soon as within a day or two. According to him, Bitcoin was extremely near to its apex for a long time. The longer its price remained so close to the apex, the more likely it was for it to go down, rather than up.
Bitcoin’s behavior throughout its history should also be taken into account, and the coin has usually had strong periods of recovery after major price corrections. One example of this was recorded in October 2013, when BTC’s volatility rate was at around 4%. Soon after that, a three-fold surge brought the coin to entirely new heights before the year ended.
Using this series of events as an indication of things to come, many have stated that there is yet hope, as it is more than possible for the current Bitcoin price drop to lead the market to another bull run. If the history repeats itself, we might see BTC climbing back up to its $20,000 record in the following months.