Bitcoin’s volume has been trading below $150 billion over the past few days due to liquidation which has stalled price movement below $7300 since Monday. Despite that, BTC dominance has continued to hold 66% of the market share for months. With the market cap statistics, there seems to be a sign of optimism from the bulls’ side as price pump may be around the corner for the primary cryptocurrency.
The Bitcoin perpetual future contract is another thing to thing that might trigger a bullish run for the market. Considering the current BTC futures volume which is technically low compared to last few months when BTC recorded its yearly high around $13700 before it started to roll over the last six month.
More so, looking at the year-to-date high of 19900 plus in 2017, Bitcoin has appeared to be seriously crashing. Many analysts have predicted that the next bearish phase might slip BTC price to $5000 while some believed that Bitcoin could even bottom at $1000 in the near future. However, Bitcoin futures volumes seem to have significantly increased on derivatives exchanges over the last 24-hours.
Following a tweet by a crypto derivatives analyst, SKEW earlier today, the last 24-hours Bitcoin futures volumes appeared to be on the rise on some prominent crypto exchanges:
Like Bitmex, which happens to be holding the highest volume of about $2.41 billion; followed by OKEx with $2.11 billion; Huobi records $1.99 billion; Binance trades $1.28 billion; bitFlyer saw $0.87 billion; CoinFlex holds $0.28 billion, Deribit $0.27 billion; FTX $0.16 billion, CryptoFacilities $0.04 billion and Bitfinex with an insignificant volumes.
The simple reaction to the recent volume surge could be traced to a potential forecast which is likely to trigger a sudden surge in price volatility. Additionally, another reason for this effect could be an act of the fear-of-missing-out (FOMO) in the market which could be around the corner.
However, since SKEW analytics, the market has seen a significant volume and volatility which made Bitcoin’s price to record a daily low of $6880 before surging to a high of $7300. BTC is currently trading at around $7300. If the volume and volatility continue to become significant, Bitcoin may print a fresh daily low or high.
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Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.