Bitcoin, the most dominant cryptocurrency in the global market, has seen an abrupt increase in its volume from $2 billion to $2.53 billion on CoinCap.io.
On Coinmarketcap, the volume of Bitcoin has risen from $3.2 billion to $3.8. The discrepancy between the volume of BTC listed on CoinCap.io and Coinmarketcap comes from CoinCap.io’s system that does not take daily trading volumes from exchanges suspected to have inflated numbers into account.
Volume was the Biggest Issue
Throughout the past seven days, CCN consistently reported that the low volume of Bitcoin had posed a serious issue for the rest of the market. Although tokens started to initiate some big gains on October 8, the lack of momentum on BTC has prevented the market from initiating large gains to the upside.
For most of October, Bitcoin was bear biased, with weakening $6,500 support level and continuous demonstration of low market activity.
Edward Morra, a technical analyst in the cryptocurrency sector, reported this week that Bitcoin had recorded the lowest volume in 2018. The unforeseen drop in the volume of Bitcoin meant one of two things; either market is demonstrating seller fatigue or traders are simply not trading in the cryptocurrency exchange market due to the uncertainty in the market.
“This is the lowest recorded daily volume in more than a year at least (as much as I could squeeze on the chart leaving chart readable) while hovering around the POC of the whole 2018. This is combined volume from various exchanges,” Morra said.
It is possible that a combination of the two factors affected the short-term price trend of BTC, leading it to maintain record-high stability at the $6,550 mark.
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.
Crypto Rand, a well-recognized cryptocurrency trader and technical analyst, stated:
“Bitcoin knocking the door and looking for the breakout. It breaks that resistance I will be looking at $7,500 as first target. Expecting a huge breakout on volume too during the next 2-3 days.”
Break Out of $7,000 Will be Challenging
Since August 9, Bitcoin has remained stable in the range of $6,400 to $6,700 and broke out of the $7,000 resistance level once in mid-September. As such, it will be challenging for the dominant cryptocurrency to surpass the $7,000 mark and sustain its momentum in a higher price range.
If it can, possibly fueled by a strong recovery in market activity and volume, many major cryptocurrencies and tokens will positively benefit from the strong price action of BTC.
Featured Image from Shutterstock. Charts from TradingView.