Home / Crypto Currency / Bitcoin Volumes Surge Nearly 30% as it Price Breaks Out of $6,550

Bitcoin Volumes Surge Nearly 30% as it Price Breaks Out of $6,550


bitcoin price

Advertisement

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.

Follow us on Telegram or subscribe to our newsletter here.
Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.
Advertisement
Read more

Check Also

Coinbase Announces New Office in Ireland as Brexit Woes Deepen

A new blog post published by the US-based cryptocurrency exchange, Coinbase, announced plans to open a new office in Dublin, Ireland. Coinbase Expands to Dublin Amid Brexit Woes Coinbase, which is one of the largest cryptocurrency exchanges in the world, already has a number of employees in Europe. While these employees are currently based in London, England, Coinbase’s new blog post announced plans to expand to Dublin as well. The expansion came as a part of the plan to scale up in European Union (EU), due to the fact that the number of customers from this part of the world grew faster than any other market throughout 2017. As the process of scaling continues, Coinbase wishes to attract the best talents that will help with creating a superior financial system for the entire world. After careful consideration of numerous cities throughout the EU, Coinbase deduced that Dublin is the best choice for their new branch. Apart from excessive growth in interest in cryptocurrencies, Dublin was also found to be a pool of talent, as well as support for new technologies. This also includes the emerging cryptocurrency economy, which is why Coinbase feels that Dublin might be the perfect location for the exchange to branch out from. As mentioned, the exchange also has a small team in London, which will be supported by the new Dublin office. Additionally, Dublin will also open up a variety of career opportunities. Another reason why Coinbase is choosing Dublin instead of expanding its London business is the so-called Brexit. The exchange simply wishes to ensure that their services will still be provided to users that require them even in a post-Brexit scenario, as stated by Coinbase UK division’s chief executive, Zeeshan Feroz. EU Still Not Regulating Digital Assets The situation regarding cryptocurrencies in the EU is complex, especially since they are still not regulated assets. Even so, several digital currency exchanges managed to receive a traditional form of license for trading fiat currencies. As for Coinbase itself, the exchange is officially regulated by the UK’s FCA (Financial Conduct Authority) and has received an e-money license. This allows it to carry out regular money-laundering checks whenever it signs up new customers. This is a process similar to the one that traditional banks are conducting. Additionally, the exchange also needs to comply with different capital requirements, as well as to ensure the protection of their customers. Ireland itself seems to be welcoming and supportive toward Coinbase’s decision to open up a new office in its capital. The move is expected to highlight Ireland’s competitive offering, as well as attractiveness for financial services. Coinbase itself sees the move as another step on the journey to ensure that their platform is viewed as a safe and trustworthy place of trade. With new talents from Ireland joining its crew, Coinbase seems to be excited about its future in Europe. Image from Shutterstock The post Coinbase Announces New Office in Ireland as Brexit Woes Deepen appeared first on NewsBTC.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.