Bitcoin’s recent upward trend appears to be far more than a fleeting relief rally, as data suggest that it was primarily driven by retail investors as margin traders are fleeing the market due to mass liquidations due to recent volatility.
This coincides with an interesting trend related to the daily volume of cryptocurrency, with the increase observed here possibly indicating the underlying strength of the recent crypto price movement.
BTC’s 7-day volatility is also starting to experience an upward trend after a longer period of decline – suggesting that crypto could see further upward movements in the coming days and weeks.
Bitcoin pushes over $ 9,000 in volume rockets
At the time of writing, Bitcoin is trading more than 2.5% at its current price of $ 9,000. The benchmark cryptocurrency is currently overcoming this previously strong resistance region, and a sustained break above it could lead to immense momentum.
It is important to note that crypto has seen some strong rejections in the region in recent days, with resistance of $ 9,200 and $ 9,500 noted.
The lack of an intense downtrend after these rejections is likely due to the fact that this movement is mainly driven by spot purchases rather than margin traders – a trend that is cleared up given the massive drop in open interest in recent days.
It also appears that private investors are getting more active with the escape of margin traders from the market as bitcoin trading volume has increased recently, according to data from Arcane Research.
“The average real trading volume of 7 days has increased this week, with a massive real daily volume of $ 4 billion on Thursday. After a few weeks with a clear downward trend, the bitcoin volume is now trending up again as the price gains momentum. Hopefully this could lead to a shift in volume trends as solid volume is a healthy sign of the rapid rise in prices, ”they said.
BTC volatility is increasing, indicating that further major moves are imminent
Another interesting trend that Arcane points out in his report is that Bitcoin’s volatility appears to be normalizing after a period of decline lasting several weeks.
“As can be seen below, volatility fell sharply after the March price drop. However, 7-day volatility rose again this week after the price had risen to levels well above $ 9,000. The 30-day volatility remains unaffected for the time being. “
Since the market is currently controlled by spot dealers, this increase in volatility could favor buyers in particular.
Featured image from Unplash.