Over the last 24 hours, the crypto market has rebounded slightly by $5 billion, from $120 billion to $125 billion following a promising breakout of the Bitcoin price above $3,700.
The unforeseen strong movement of Bitcoin could lead to the short-term recovery of other major crypto assets and low market cap cryptocurrencies in the upcoming days.
Typically, during the weekend, the crypto market tends to demonstrate a dip in volume and a minor decline in trading activity.
However, throughout the past two days, the volume of Bitcoin has remained above the $5 billion mark with the daily volume of the crypto market above $17 billion.
The relatively high daily volume of major crypto assets has allowed the market to rebound prior to Monday when the volume generally begins to pick up and the market starts to see an increase in trading activity.
Prior to the breakout of Bitcoin above $3,700, a prominent cryptocurrency technical analyst with an online alias “Cred” said that if the Bitcoin price surpasses $3,700 in the short-term, it is highly likely to lead to a positive upward movement.
The analyst explained:
Very compressed price action following the high set on Monday. My plan is straightforward: Price below & finding resistance at $3,560s I’ll look for sells targeting $3,430s. Breakout & price accepted above $3,700s I’ll be a buyer until $3,840s.
In the grand scheme of things, while a breakout of resistance levels below the $4,000 mark may prevent a further drop below the mid-$3,000 region, it may be insufficient in providing a foundation for the dominant cryptocurrency to initiate a proper short-term rally.
Since late December, Bitcoin has remained in a tight range between $3,500 to $4,100, unable to test key resistance levels nor drop below crucial support levels.
Across the board, many major crypto assets and low market cap digital assets have recorded two to four percent gains against the U.S. dollar on the day.
Ethereum, Cardano, and Litecoin surged by three percent, four percent, and five percent respectively in the last 12 hours, following the upward price movement of Bitcoin.
While the bear market in crypto remains in full effect, leading businesses in the likes of Binance are seeing high demand in key markets like Europe.
On January 17, subsequent to the launch of Binance Jersey, a regulated fiat-to-crypto exchange that supports British pound and euro trades, Binance CEO Changpeng Zhao said:
Binance.je is overwhelmed with registrations. There is a backlog of KYC verifications already. More resources are allocated to reduce it. In the mean time, we appreciate your understanding and patience. The registration prize is FIFO based, no worries. Just crazy! One thing we do “well” is underestimating ourselves, and the market.
To prevent a further drop below a low enough range, a sustainable high daily volume in the crypto market is crucial. For now, the market is seeing a relatively high level of trading activity across major markets.
Last modified: August 2, 2020 11:04 AM UTC