Bitcoin Trading Volumes Keep Trending in the Right Direction – Can BTC Sustain Its Bull-run?
The bull run in Bitcoin prices since the beginning of 2023, during which the value of the currency increased by about 70%, has been accompanied by an increase in trading volumes.
Recently, daily trade volumes increased to well than $70 billion, the biggest amount seen since the days following the FTX collapse.
When last traded, bitcoin was slightly over $28,000, up more than 40% from monthly lows under $20,000.
The 21 and 50-day Moving Averages of Volumes have recently crossed above the 200DMA of Volumes, and the former is on the verge of reaching its highest level since mid-2021, indicating that Bitcoin trade volumes do indeed appear to be in a clear uptrend.
High trade volumes occur when the market is moving aggressively, such as during severe bull and bear market stages.
The market should remain in the first of these phases, in the hopes of the Bitcoin bulls.
On-chain Metrics Also in a Positive Trend
The exchange-related improvements come at a time when on-chain data indicates that activity on the Bitcoin blockchain is also increasing.
The data below, provided by The Block, show that the volume of daily transactions on the Bitcoin blockchain just reached its highest level since early 2021.
Financial Crisis Worries Could Send Bitcoin Yet Higher
Analysts believe that rumblings of a financial catastrophe might still propel the world’s largest cryptocurrency by market capitalization higher, despite mounting technical signals that the Bitcoin market is heating up in the short term.
In recent weeks, as investors have flocked to cryptocurrencies that are immune to the failure of the established financial system, bitcoin has served as a safe haven, rising in line with gold.
Following Wednesday’s policy statement, crisis concerns may grow if US Federal Reserve Chairman Jerome Powell communicates poorly about the prospect for tightening monetary and fiscal policy.
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