The crypto market has experienced a zany past 24 hours. Bitcoin (BTC) popped up by 8%, as per CoinMarketCap, and most other digital assets posted strong gains. With this recent move, “cryptocurrency” has graced mainstream media headlines and money has begun to flood back into this space.
What’s more, Binance, one of the largest digital asset exchanges, purportedly (according to chief executive Changpeng Zhao) saw a system traffic all-time high, “by far”. Considering that the cryptocurrency industry is barely out of a “crypto winter”, and the market is still 70% down from its all-time highs, this fact is jaw-dropping.
Data aggregated by CoinMarketCap shows that Binance has processed over $3.07 billion worth of cryptocurrency trades in the past 24 hours, while all “exchanges” processed $103 billion.
This suggests that retail interest is flooding back into the market, and bodes well for the ongoing rally, as strong volume is needed to drive this market.
Had some system performance bottlenecks, trading saw some delays, fixed now. Withdrawals also saw some delays, fixed as well, but there is a backlog will take another 15 minute to drain.
Seeing ATH in system traffic, by far!
— CZ Binance (@cz_binance) May 27, 2019
What’s Next For Bitcoin
Binance’s monumental levels of volume confirm the sentiment that the rally continues from here. But are the technicals in place for a move higher?
Per previous reports from NewsBTC, Level’s Josh Rager recently noted that now that Bitcoin closed its weekly candle above $8,400, he believes a foray to $9,600 may come to fruition. As he wrote in a recent tweet: “Goodbye meme triangle, hello $9k+ targets. Bitcoin could cool off, run sideways but IMO will continue to move up over $9k.”
Moon Overlord, Crypto Rand, and Galaxy are three other traders that seem to be under the impression that due to the $8,400 close, a move to close to five digits is entirely possible. As Overlord noted, there is nothing but hot air between current levels and around $10,000.
Indeed, as seen in the chart below, Bitcoin topped out at $10,000 in May, indicating that it is a horizontal level of importance. To reach $10,000 from here, BTC will need to rally by $1,150, which would be a 13% move higher from current levels.
Yet, $10,000 might be just the start. Tom Lee, the head of research at Fundstrat Global Advisors, explained to his followers a few weeks back that by the time BTC hits quintuple digits, the fear of missing out (FOMO) will activate in those who “saw Bitcoin as dead forever.” In other words, once the aforementioned level is breached, a newfangled, jaw-dropping wave of buying pressure may grace these markets.
On the downside, Crypto Cred notes that if $8,200 is closed under, a call for a short-term top would be in order. What would follow may be a move to $7,200, where BTC was trading following the sudden Bitstamp flash crash seen weeks ago.
$BTC High Time Frame Analysis
Broke through resistance with no pullback to the level.
$8200 area is technically support now. Losing that level would indicate a short-term top & almost certainly take us to the range low.
Overall bias: buying HTF dips unless below red level. pic.twitter.com/rOAHfs1HOv
— Cred (@CryptoCred) May 27, 2019
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