The bitcoin price has surged 10 percent over the past 30 minutes, subsequent to experiencing a substantial spike in its volume.
Within one-hour period, the price of bitcoin, Bitcoin Cash, ether, Ripple, and EOS increased by 6 to 10 percent, as the valuation of the cryptocurrency market surged to $292 billion from $272 billion, by more than $20 billion.
An unexpected corrective rally occurred in the evening of July 17, pushing the price of major digital assets to spike by large margins. Bitcoin and EOS have been the best performers out of the major cryptocurrencies, rising by nearly 10 percent in a short period of time.
In previous reports, CCN noted that the market has seen the emergence of a series of positive events such as the government of South Korea regulating its cryptocurrency market, which could fuel the next rally of the market.
Optimistic developments in leading cryptocurrency markets including the US, Japan, and South Korea were not reflected by the crypto market over the past two weeks, and the recent bull run may begin to portray the progress the market has seen in terms of regulation, adoption, and general consumer demand.
The last time BTC spiked by a margin as big as today’s rally was April 9, when the price of BTC surged from $6,900 to $8,000, within 30 minutes. Ultimately, the rally from $6,900 to $8,000 led the price of BTC to test $10,000.
If the price of bitcoin surpasses the $8,000 mark, it may be able to replicate the same movement it experienced on April 9, and potentially test the $10,000 support level. However, if bitcoin remains stable in the $7,400 region, bitcoin could try breach major support levels between $8,000 to $9,000 in the upcoming week.
The difference between the rally of July 17 and previous false runs throughout June is the volume. Currently, on Binance, the world’s largest cryptocurrency exchange, the volume of bitcoin against Tether (USDT) is $300 million, up from $100 million since July 16. In two days, the volume of bitcoin tripled.
Throughout July, the issue with the crypto market was its low volume, and despite the optimistic momentum indicators and positive signals of the Relative Strength Index (RSI) and momentum average convergence divergence (MACD) of bitcoin, the low volume of the crypto exchange market disallowed a rally from being initiated.
The short-term rally of July 17 was supported with a large spike in volume, complemented by positive events such as the appointment of a new CEO for Goldman Sachs, who has discussed bitcoin on a positive light on multiple occasions.
Previously, David Solomon, the newly appointed Goldman Sachs CEO, admitted for the first time that Goldman Sachs is preparing to launch a proper cryptocurrency trading platform.
“We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously. We’re listening to our clients and trying to help our clients as they’re exploring those things too. Goldman Sachs must evolve its business and adapt to the environment.”
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Last modified: May 20, 2020 6:31 PM UTC