Bitcoin has been able to continue extending its upwards momentum and has firmly established its newfound position within the $6,000 region, nearly erasing all of the losses that were incurred in late 2018 after the cryptocurrency failed to find support around $6,400 and was sent spiraling downwards before it found support in the lower-$3,000 region.
Bitcoin is now approaching a critical price level that, if broken above, would confirm the start of the next bull market, which could lead to a gradual upwards climb that ultimately results in another parabolic movement that sends the cryptocurrency back towards, or even above, its previously established all-time-highs.
Bitcoin (BTC) Surges to $6,400
At the time of writing, Bitcoin is trading up over 5% at its current price of $6,415, up from its 24-hour lows of just below $6,100.
This latest leg of BTC’s upwards surge has led it to the highest price level it has traded at in all of 2019, and has placed the crypto back at price levels that were last seen in early-November of 2018.
This recent upwards momentum has been driven by a steady increase in trading volume, which has surged nearly three times from where it was in March of this year.
According to Messari’s “real 10” 24-hour volume indicator, Bitcoin’s current daily trading volume is at just below $800 million, up significantly from its real daily spot volume in late March, which was $270 million according to a report from Bitwise investments.
2/ First, key takeaways:
A. 95% of reported BTC spot volume is fake
B. Likely motive is listing fees (can be $1-3M)
C. Real daily spot volume is ~$270M
D. 10 exchanges make up almost all real trading
E. Most of the 10 are regulated
F. Spreads are <0.10%. Arb is super efficient
— Bitwise (@BitwiseInvest) March 22, 2019
The cryptocurrency has now put a significant amount of distance between its current price levels and its 2018 lows of $3,200, which seems to confirm that this price level was, in fact, a long-term bottom.
BTC Close to Confirming Next Bull Run
Analysts have long postulated that $6,400 is the key price level that must be broken above in order for the start of the next bull run to be confirmed, and although Bitcoin’s price has now passed that level, it is important that it holds above it for the remainder of the day.
Alex Krüger, a popular economist who focuses primarily on cryptocurrencies, spoke about the importance of this level in a tweet earlier this month, explaining that a break above $6,400 would constitute the start of a fresh bull market.
“$BTC now at $5750, the 2018 low prior to the November crash. The 2018 bear trend ended once above $4200. Above $6400, 2018’s most traded price, it’s a bull market,” he explained.
$BTC now at $5750, the 2018 low prior to the November crash.
– The 2018 bear trend ended once above $4200.
– Above $6400, 2018's most traded price, it's a bull market. pic.twitter.com/rIQI8RIPgs
— Alex Krüger (@krugermacro) May 3, 2019
Josh Rager, a popular crypto analyst on Twitter, spoke about the critical nature of the $6,400 level in a recent tweet, noting that bulls must hold the cryptocurrency above this price level for the rest of the day in order for the next bull run to begin.
“$BTC has pushed its way to a key area of liquidity (interest). A weekly close about this area marked via box would certainly be bullish. Will watch weekly close, if fails to close above here this week or next week then I’d suspect a decent pullback. Not bullish on buying alts yet,” Rager explained.
$BTC has pushed its way to a key area of liquidity (interest)
A weekly close about this area marked via box would certainly be bullish
Will watch weekly close, if fails to close above here this week or next week then I'd suspect a decent pullback
Not bullish on buying alts yet pic.twitter.com/zkIy6YsPA6
— Josh Rager ? (@Josh_Rager) May 10, 2019
As Friday wraps up, all eyes will be closely watching to see whether or not the ever-so-important $6,400 region can be decisively broken above, or if another dip back to BTC’s next region of support is imminent.
Featured image from Shutterstock.