Strong Bitcoin (BTC) Volumes Have Crypto Investors Enthused: Further Rally?
Bitcoin Volume Booms
Over the past 48 hours, crypto assets across the board have embarked on a jaw-dropping rally. For the first time in weeks, Bitcoin (BTC) neared $4,000, as altcoins, namely EOS and Ethereum (ETH), rallied by double-digits in terms of percentage. While this sudden run looked structurally similar to prior bear market rallies, it quickly became that something was different, as crypto analytics resources began to post staggering volumes.
According to Skew Markets, trading analytics & Bitcoin investment service provider, Monday saw crypto’s biggest (highest volume) day in 2019. Skew, citing data it compiled, depicted Bitcoin perpetual futures volumes spiking through the roof on a majority of notable exchanges, including BitMEX, CryptoFacilities/Kraken, BitFlyer, Deribit, and OKeX.
Mati Greenspan, eToro’s in-house crypto trader, also touched on the sudden influx of buy-side pressure. Greenspan noted that global crypto volume read $35 billion, a “level not seen since last April.” While he didn’t explain the importance of this statistic in this tweet, he mentioned it the day prior. The respected industry commentator told his followers that “more meaningful moves” often go hand-in-hand with higher volumes, hinting that he believes this was decidedly a bullish breakout.
Kevin Rooke, a Canadian crypto researcher, echoed this thought process. Rooke took to Twitter to explain that Bitcoin saw $9.9 billion in exchange volume on Monday, the highest reading of this measure since May 3rd, 2018.
These monumental volumes, which have made many analysts reminisce to 2017’s bull market, have led some analysts to claim that a further breakout could be in order. Leading analyst Galaxy, who recently called for a so-called “altseason,” whereas cryptocurrencies at large would dramatically outperform Bitcoin, recently noted that the volume statistics could confirm his prediction.
Per previous reports from Ethereum World News, while Galaxy is under the impression that while Bitcoin will run, he expects for altcoins to snag 70%+ of crypto’s market share in the coming year.
This Rally Might Have Legs
Although some pundits have argued that a short-term pullback could be in order, a number of analysts have been calling for Bitcoin to reach $4,000. The team at Bitcoin Bravado, a leading crypto-centric technical analysis outfit, divulged that due to the influx of volume seen Sunday and Monday, along with the fact BTC surpassed its 50-day EMA, this move could see further upside.
Trader Mayne, a long-time cryptocurrency trader, even noted that as there have been notable bullish moves over recent weeks, it wouldn’t be nonsensical to claim that the ongoing bear market could be breathing its last breaths. Mayne added that those stuck with bearish lenses, like Murad Mahmudov, Tone Vays, along with other short-term skeptics, could miss out on the eventual rally.
Title Image Courtesy of Andre Francois Mckenzie Via Unsplash