Bitcoin’s bulls awoke earlier today when the crypto markets surged, sending BTC to well over $4,100. This price surge came about after an extended period of sideways trading that signaled to traders that $4,000 was previously a strong level of resistance for the cryptocurrency. Today’s jump may have been fueled in part by a record BTC futures volume earlier this week.
Bitcoin (BTC) Futures Volume Surges to New Records, But Could This be a Dead Cat Bounce?
At the time of writing, Bitcoin is trading up over 3% at its current price of $4,120, up from its daily lows of $3,980.
The CME Group noted in a recent tweet that BTC’s futures volume has surged to record highs in recent times, which is partially due to Bitcoin’s recent price ascent that led it to its current prices from monthly lows of $3,400.
“Surge in bitcoin price leads to record $BTC futures volume on February 19 with over 18K contracts traded.”
— CME Group (@CMEGroup) February 21, 2019
Peter Brandt, an incredibly popular analyst, spoke about Bitcoin’s current price action in a tweet to his 256k followers, pointing out that there are similarities in BTC’s current price action and that seen in 2015, which was proceeded by a large bull run.
“If Dec 2017 to Feb 2019 is an analog to Dec 2013 to Jan 15, do you have a tactica plan to become fully invested in $BTC? I do.”
— Peter Brandt (@PeterLBrandt) February 23, 2019
Analyst: Bitcoin Likely to Range Sideways Until $6,000
Although the multiple price surges seen this month have certainly been positive for cryptocurrency traders and investors, one popular cryptocurrency analyst noted that all price moves below $6,000 are likely noise, and any price surges below that price level will not mark the end of the persisting bear market.
“I see the notion thrown around quite regularly that if BTC can go to $4400+ that’d be the start of a bull market. A higher low in combination with a higher high does not mean the bear market is over. I’ll trade expecting sideways till 6k is breached. Sell resistance buy support,” explained DonAlt, a popular cryptocurrency analyst on Twitter.
I see the notion thrown around quite regularly that if BTC can go to $4400+ that'd be the start of a bull market.
A higher low in combination with a higher high does not mean the bear market is over.
I'll trade expecting sideways till 6k is breached.
Sell resistance buy support. pic.twitter.com/snnnjmu1wK
— DonAlt (@CryptoDonAlt) February 23, 2019
As the markets continue to unfold as the weekend continues on, traders will likely gain greater insight into whether or not the price gains seen throughout February are fleeting, or if bulls will continue to push BTC higher.
Featured image from Shutterstock.