19.4 C
Amsterdam
12 June 2021
PumpMoonshot
Image default
Bitcoin

Bitcoin volumes on crypto exchanges are rising, bullrun upcoming?

Bitcoin is, like previous days, indecisive. Both the bulls and the bears keep each other in balance, which means that the course is trading sideways for days, apart from a number of peaks and troughs. However, a crypto trader now notes that despite the inactive looking market, volumes of bitcoin trading on various cryptocurrency exchanges have increased considerably. Is this a sign of an upcoming bull run?

The well-known bitcoin commentator ‘The Crypto Dog’, which has more than 100,000 followers on Twitter, noticed in a tweet that volumes have increased in a period when the trend is generally bearish. This is quite remarkable according to the commentator. He tweeted the following:

Or this volume is not representative of reality (possibly wash trading included), or we are about to burst into a ferocious bull market.

For example, the cryptocurrency exchange BitMax would have a daily trade volume of $ 1.66 billion, which is 5% of the total volume. The chance is plausible that this exchange uses bots and market makers to make the trading volume appear high, while in reality this is not the case.

Yet there is a small chance that the volumes are correct, and if that is the case, there is a chance that the price will soon rise enormously. However, most analysts remain bearish in both the short and medium term.

For example, Australian crypto researcher Willy Woo notes that at the moment few short and long positions are open. In the past, the price plummeted significantly four times when these levels were low. Woo said further:

Zones with a low number of long + short positions historically coincide with bearish price actions during bear markets. When [the market] is undecided, the trend is your friend.

At the moment bitcoin is worth $ 3,893.29 and the most dominant cryptocurrency has increased by 0.75% over the past 24 hours. The price seems to behave somewhat stable between $ 4,237 and $ 3,679. For now, these are the most important resistance and support levels. In case the support of $ 3,679 does not hold, the next major support is $ 3,271.

 

Related posts

Bitcoin price breaks $40K: Here’s where BTC may go next

PumpMoonshot

Bloomberg: The Bitcoin price will surge due to these 3 factors

PumpMoonshot

Bitcoin price nears $16K, but it’s Ethereum that may shine in November

PumpMoonshot

Leave a Comment