The daily trading volume of the Bitcoin Bakkt futures market has been steadily increasing since mid-January. Despite criticism by some investors that the recent rally was due to manipulation, New data shows real volumes are increasing.
Real Bitcoin transaction volume is increasing
When the volume increases in parallel with the market, it usually implies that the price increase is supported by strong momentum.
When Bitcoin price increased from $ 8,000 to $ 10,500, Bakkt's daily volume also increased from about $ 10 million to $ 24 million.
The increase in volume of Bakkt, as well as tightly regulated futures platforms like the GME Group, shows that the demand for Bitcoin from retail investors and recognized investors is increasing.
Although most of the volume in the cryptocurrency market is recorded when the initial Bitcoin price rises from the margin trading platforms like BitMEX, over time, the volume in the spot market and the corresponding hybrid also increased following.
The expansion of the mainstream volume in the cryptocurrency market has given both Bitcoin and altcoins like Ethereum a more solid foundation for further structuring the bull market.
What will come next?
In the short term, traders still have conflicting views about Bitcoin's price trend. The volume of the No. 1 cryptocurrency is increasing and technical indicators such as the "golden cross" of the exponential moving average (EMA) show the potential for further appreciation for BTC.
Over the past 24 hours, the entire cryptocurrency market has consolidated after a massive rally on February 15.
Famous cryptocurrency trader Crypto Michaël said:
“And so it bounced up on the green area around $ 9,450- $ 9,500. That is very necessary. We may still see a relatively calm move before it hits a high of $ 10,400 or a low of $ 9,500. ”
Given the market structure for Bitcoin and for other major cryptocurrencies like Ethereum that seems to be optimistic on a macro level, the volume is expected to continue to increase as the halving event takes place in May.
Both Bitcoin and Ethereum, which led the bull market throughout February, have demonstrated a protracted rally with frequent pullbacks.
Slight corrections allow the market to maintain a healthy growth momentum without risk of falling deeply in the near future. It also provides stability in the market, preventing sudden fluctuations - often resulting in a series of liquidation or short liquidation.
Maybe you are interested:
Join our channel to stay up to date on the most useful news and knowledge at:
According to CryptoSlate
Translated by ToiYeuBitcoin
0 Comments