Over the past 24 hours, the cryptocurrency market has demonstrated the same trend it has shown throughout the past 12 days, with Bitcoin at $6,400.
The volume of Bitcoin has increased by nearly 20 percent from $3.1 billion to $3.5 billion, hinting a rise in trading activity in the cryptocurrency exchange market across major digital asset trading platforms.
The sudden rise in the volume of Bitcoin, which has been stagnant since mid-October, could lead to a potential short-term positive movement on the upside in the days to come.
Is Bitcoin Ready to Climb?
Various technical indicators of BTC suggest that the dominant cryptocurrency is building momentum to breakout of several minor resistance levels in the high $6,000 region.
Cryptocurrency trader and technical analyst Uzi stated that if BTC can surpass the $6,400 mark with ease, then it is possible for the asset to eye a breakout above the $6,500 mark.
“BTC looks ready to break out of the bull pennant on the 4H, price closed above the 50 & 20 day EMA today and MACD is bullish now, resistance is looking like 6417-6420 here, lets see if we can break it soon.”
The volume of BTC increased subsequent to the closure of a daily candle with lowest recorded volume in the past 10 months. During the weekend, the volume of the cryptocurrency exchange market tends to dip, alongside over-the-counter (OTC) markets that are said to process three times the daily trading volume of major cryptocurrency exchanges.
Hence, the rise in the volume of BTC on a Saturday is a positive indicator for the short-term trend of the asset. If the momentum of BTC above the $6,400 can be sustained throughout Sunday and continues on next week, the positive sentiment around the market will likely allow large market cap cryptocurrencies to rise in value.
Throughout the past week, in a sideways market, small tokens recorded decent gains against Bitcoin in the range of 5 to 10 percent. However, major cryptocurrencies like Bitcoin, Ethereum, Ripple, and Bitcoin Cash have not been able to demonstrate signs of recovery.
Von, another recognized crypto analyst, said that BTC is expected to hold $6,400 comfortably in the next 12 to 24 hours.
“BTC having a calm Sunday while kindly closing that Tether premium for us, currently $80 USD price very stable and Tether prices look likely to meet imminently I would expect $6,400 to hold and provide good territory for bounce, breaking that trés bearish.”
While the trading activity in the cryptocurrency exchange market increased over the past two days, the majority of traders are still waiting out for the market to demonstrate a major movement.
A potential increase in the price of Bitcoin to the $6,500 to $6,600 range is dependent on the ability of the market to sustain decent volume and momentum in the upcoming days.
Last modified: March 4, 2021 3:04 PM