This Volume Trend Suggests Bitcoin is About to See Massive Volatility

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Bitcoin’s recent uptrend appears to be far more than just a fleeting relief rally, as data suggests that it has been driven primarily by retail investors as margin traders flee the market due to the mass liquidations resulting from recent volatility. This coincides with an interesting trend seen while looking towards the cryptocurrency’s daily volume, with the spike seen here potentially pointing to underlying strength behind the crypto’s recent price movement. BTC’s 7-day volatility is also beginning to enter an uptrend following a prolonged period of decline– suggesting that the crypto could be poised to see further upside in the days and weeks ahead. At the time of writing, Bitcoin is trading up over 2.5% at its current price of $9,000. The benchmark cryptocurrency is currently in the process of surmounting this previously strong resistance region, and a sustained break above it could lead it to see some immense momentum. It is important to keep in mind that the crypto did face a few strong rejections within the region over the past couple of days, with resistance being established at $9,200 and $9,500. The lack of an intense downtrend following these rejections is likely the result of this movement being driven primarily by spot purchases rather than by margin traders – a trend that is elucidated while looking towards the massive decline in open interest seen throughout the past few days. It also appears that retail investors are beginning to grow more active as margin traders flee the market, as Bitcoin’s trading volume has rocketed higher as of late, as seen by data from Arcane Research. Another interesting trend that Arcane points to in their report is that Bitcoin’s volatility appears to be starting to return to normal following a multi-week phase of declining. Because the market is currently being controlled by spot traders, this increase in volatility could primarily favor buyers.

All data is taken from the source: https://www.newsbtc.com/
Article Link: https://www.newsbtc.com/2020/05/03/this-volume-trend-suggests-bitcoin-is-about-to-see-massive-volatility/

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This Volume Trend Suggests Bitcoin is About to See Massive Volatility: https://www.youtube.com/watch?v=HUbYUoBXJec
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Crypto Trading
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