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Crypto Trading Volume Nears Peak Levels, Have The Bulls Returned?

Avatar Martin Young 7 months ago

Today’s $18 billion crypto market pump has been the news that everyone in the industry has been waiting for. The doom and gloom that has shrouded the ecosystem over the past six months or so has dissipated today as a ray of hope shines bright and new records are made again.

Volume Hits $50 Billion

All eyes were on Bitcoin as it smashed through resistance at $4,200 a few hours and surged up to a high of just over $5,000 in a couple of big green hourly candles. The slow and steady build of bullish pressure finally released and BTC surpassed the 200 EMA to reach its highest level since November.

A number of prominent analysts had predicted a BTC pump to $5k a few weeks ago and said it could happen by May. Well it happened in early April but could not be sustained as an instant correction took prices back to the $4,750 level where Bitcoin currently trades according to the Tradingview.com Bitfinex chart. The move has added over 12% to BTC on the day which makes its year-to-date gain around 28%. Not bad for an asset that many in the mainstream media had written off.

The upshot of this massive movement is daily volume which needs a closer look. According to Coinmarketcap.com (which may or may not report volume that accurately) the total is just under $50 billion at the moment.

Daily volume 24 hours. Coinmarketcap.com

Using the same source as a comparison, volume has not been at this level since the crypto peak of January 2018! Binance is top of the exchange charts again with an adjusted volume of $1.6 billion and Bitcoin is the leading asset with around 30% of the total. For the past 12 months daily volume has seldom exceeded $30 billion and only broke above $50 billion during the end of 2017, early 2018 fomo frenzy. These levels could be a potential sign that the bulls have returned.

Bitcoin holding on to these new support levels and making more ground will indicate a true reversal pattern and a melting of the winter snow. However, a few hours after the pump is still too early to tell.

Crypto Twitter Reacts

Naturally the crypto twitter-sphere reacted with a number of stalwarts coming out of the digital woodwork to revel in the revival. There were plenty of questions asked but nobody seems to have a real reason for the spike.

The Bitcoin boost has lifted markets to a four month high of over $160 billion as many of the altcoins enjoyed double digit gains. Litecoin, Cardano, Tron and Monero were among them. A lot of money has been waiting in the wings for a movement and it came today. The hope now is that it is not a pump and dump and that Bitcoin will trade higher in search of new resistance levels around $5,000.

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