Crypto Trade Volume Doubles Overnight, Have The Bears Run Out Of Steam?

After a seemingly endless cycle of non-action, the crypto market finally saw a spark of life on Monday, as fears of a Tether ‘bank run’ hit newfound highs, while confusion strong-handed investors into making moves. In the span of just a few hours, exchanges recorded billions of dollars volume, quickly pushing this market off its year-to-date lows from a volume standpoint.Crypto Trading Volumes Surge To 1 Month HighAs reported by NewsBTC previously, crypto investors were in for a treat in the wee hours of Monday morning, as digital assets saw an unexpected influx (and a large one at that) of buying pressure, pushing Bitcoin above $7,000 for the first time in months. Following some quick internet sleuthing, many traders determined that Bitcoin’s strong surge to the upside could be boiled down to a single factor.This factor, of course, as widely reported, was the fears of Bitfinex’s insolvency spreading like wildfire through this market, resulting in a capital flight of cryptocurrencies from Bitfinex to other leading crypto exchanges.At one point, the now-infamous ‘Bitfinex premium’ somehow surpassed $1,000, as Bitcoin surged above $7,600 due to thin order books on the aforementioned exchange. On the other hand, on well-regulated platforms like Gemini and Coinbase, which offer insurance for their client’s crypto holdings, Bitcoin only traded at a relatively measly $6,600, which was the “true” price of the digital asset.Bitfinex Premium $1000+ pic.twitter.com/bf9vWCSRCg— Bitfinex’ed 🐧 (@Bitfinexed) October 15, 2018Volumes on Bitfinex quickly surged, as users rushed to liquidate their U.S. credit for crypto assets to subsequently withdraw their holdings to a wallet of someone or some organization they could trust.Due to the well-read belief that Tether goes hand-in-hand with Bitfinex, traders also rushed to sell their USDT holdings, as many claimed that the Tether Foundation didn’t have the reserves to back all issued stablecoins. At one point, Tether tokens fell under $0.91 on Kraken, alluding to the fact that a copious amount of USDT had just been dumped by a multitude of wary traders.The rise of Bitfinex’s insolvency rumors, coupled with growing fears about the legitimacy of Tether, happened to manufacture a perfect storm, so to speak, resulting in a period of market uncertainty, confusion, and even panic in some fringe cases.And although the collective value of all crypto assets saw a $20 billion bump, many investors claimed that this obviously wasn’t the breakout that bulls have been clamoring for.Still, what went under the radar of many investors is that volumes saw an unprecedented surge in correlation with thousands of traders choosing to sell their USDT and withdraw their funds from Bitfinex, which was a sign some analysts have been waiting for. Preceding this move, which saw nearly every single crypto asset move well into the green, NewsBTC’s very own Joseph Young, claimed that while nearly every important indicator is calling for growth, volume was still mysteriously absent.Bitcoin and crypto market waiting for 1 thing1. Final shakeout ✔️
2. Positive developments (Bakkt, Custody, Banks) ✔️
3. Months of stability Bitcoin at $6,200 ~ $6,800 range since August 9 ✔️
4. Lower highs since January bottoming out with record low volatility ✔️
5. Volume ✖️
— Joseph Young (@iamjosephyoung) October 15, 2018But now, with Bitcoin volumes doubling from $3 billion to a monthly high at $7 billion, per data compiled by CoinMarketCap, Joseph added that the prospects of this market are starting to look “great,” likely indicating that he saw this surge of volume as something to keep watching.The volume of Bitcoin has more than doubled in the last 24 hours.$2 billion to $5.64 billion on CoinCap
$3 billion to $7 billion on Coinmarketcap
Real price of BTC is around $6,400 (fiat exchanges). $6,150 to $6,400 with solid increase in volume is great.— Joseph Young (@iamjosephyoung) October 15, 2018It wasn’t only Bitcoin that saw its volume return, as cryptocurrencies across the board all saw their time in the sunlight in the past 24 hours. To attest to this fact, per data compiled by CoinMarketCap, the total volume seen by crypto rose from $9 billion on Sunday to $22 billion, where this figure has held for the past few hours.Chart Courtesy of CoinMarketCapAssuming that volume has returned and that it’s here to stay, technicians will continue to eye Bitcoin’s $6,800 price level, which has long been a level of heavy resistance for the leading crypto asset. Fundstrat’s Robert Sluymer, for one, recently claimed that while now isn’t the time to increase your exposure to Bitcoin, a convincing move above “September’s real and relative highs,” which are both situated around the $6,800 level, may indicate that this market is finally undergoing a trend reversal.Keeping in mind that the arrival of substantial amounts of trading volume is often the gun that sets off the race, so to speak, many are starting to believe that a bull run could be in this market’s grasp.Featured Image from Shutterstock

Bitcoin: Why October Favors a Bull Run

Bitcoin investors have had a disappointing year so far. Could October bring back their smiles with a bull run? A lot of factors point towards that possibility.


Failed Rallies Since January

Bitcoin price in January 2017 was around $1,000. Market observers were bullish and predicted that by December the rate could climb anywhere between $3,000-4,000. Contrary to all expectations, the cryptocurrency went on to touch its all-time high of nearly $20,000 in mid-December last year, returning unimaginable gains of 20x. A driving force in this massive bull run was the infusion of retail investors who got excited about all the hype and jumped feet first into the cryptocurrency ecosystem.

Whatever goes up, must come down. Bitcoin has had a history of corrections to the tune of 90%. And history did repeat itself. To the disappointment of investors who entered the market at the highs, the digital currency plunged to a low of $5,800 in February 2018.

Since then, all attempts for a full recovery have been unsuccessful. Bitcoin has had failed rallies in February, March, April, May, July, and September due to insufficient volumes. Gradually, hope gave way to despair, and the retail investors lost patience and started exiting the market, booking losses.

Bitcoin

Could October Turn Things Around?

There is a reasonable likelihood that this month could see a change in Bitcoin’s fortune, owing to multiple positive factors.

First, technical analysts and market observers believe that the digital asset has seen the bottom. The price also seems to have consolidated inside the long-term descending triangle from a technical analysis perspective.

The Securities and Exchange Commission of the U.S. has so far rejected all applications seeking approval of a Bitcoin ETF, including the one from the Winklevoss twins. However, the regulator has sought public opinion on the nine crypto products that it rejected in August.  It was perhaps growing institutional interest that made the SEC reconsider the applications, and it has set October 26th as the date for the final judgment.

Bitcoin ETF

Second, a positive outcome by the SEC will open the doors for institutional money to flow in and be a trigger for the bulls to be back in action. Last year, it was the announcement regarding the listing of Bitcoin futures contracts by CME (Chicago Mercantile Exchange) and CBOE (Chicago Board Options Exchange) that had triggered the rally.

Finally, looking at the seasonality of the market, October to December has always been a good time for Bitcoin. Bitcoin has experienced bull runs during this timeframe six times in the past.

Bitcoin price action has proven time and again that it can take an exponential path within a matter of days and weeks. Though predicting market circumstances is impossible, currently available information and indicators point towards a possible break-out towards an upside in October.

Do you think that October will see a reversal in the price action and see a successful rally for Bitcoin? Let us know in the comments below.


Images courtesy of

Tags: , , ,

Is Bitcoin Set for Another Bull Run – This Technical Indicator Says So

Bitcoin appears set for another bull run that could see it recover a significant portion of its lost value during the 2018 slump. An analysis of a technical indicator reveals a positive trend reversal for the top-ranked cryptocurrency.


Bitcoin Bull Run Imminent

According to Bloomberg, the RIG trend lines indicator points to an imminent price rally for BTC. RIG trend lines are technical indicators that combine both the relative strength index (RSI) indicator and momentum studies.

An examination of the indicator shows the momentum gauge intersecting the RSI gauge. When this happens, it is interpreted that a significant price rally is imminent. Whenever both gauges cross, BTC experiences a significant price rally.

The last intersection occurred in August. It signaled the start of an over 20 percent price surge that took BTC to above $7,300 by the beginning of September. If history repeats itself, then Bitcoin could be poised to test $8,000 by the end of October.

Bitcoin last reached the $8,000 price mark at the back end of July 2018. The cryptocurrency has floated between minor price surges and subsequent declines for most of the third quarter of the year.

Narrowing Volatility: A Sign of Better Things to Come

Bitcoin like the rest of the cryptocurrency market has declined over the course of the year. However, in the last three months, the volatility of the top-ranked coin has diminished considerably.

Some experts predict that a price breakout due to this shrinking volatility is imminent. Bitcoin bulls will be hoping that their analysis of the RIG trend lines is accurate which would mean another bull run.

Another Q4 Price Gallop in 2018

Elsewhere in the market, there are recent signs of a price renaissance for many cryptocurrencies. Ethereum, XRP, and Bitcoin Cash have experienced significant price rallies over the last few days.

Recently, Tom Lee predicted that Ethereum could reach $1,900 by the end of the year. According to the Fundstrat Global Advisors chief analyst, ETH has underperformed its top-ten peers by two standard deviations. Thus, a massive price surge is on the cards for the second-ranked cryptocurrency.

In recent years, Q4 has brought with it significant gains for the cryptocurrency market. Many stakeholders continue to hold out hope that Q4 2018 would follow this pattern of rapid price gallops.

What is your end of year Bitcoin price forecast? Let us know your thoughts in the comment section below.


Images courtesy of Bloomberg, Coinmarketcap and ShutterStock

Tags: , , ,