The crypto market is witnessing a lot of activities as the total cryptocurrency trading volumes has surged to a 10 months high level at $36 billion in the 24 hour period on February 20th.
This is a bit of relief for the market, as it was under severe stress and underperformance for quite a long time. The data is reflected in the coinmarketcap website, which tracks all the buying selling activity in 2074 cryptocurrencies across exchanges worldwide. The large majority of the volume has been reported from the top 10 cryptocurrencies, which aggregates almost 90 per cent of all trading volume.
Since the recent rally, in which Bitcoin price reached towards the $4,000 level, the market has been receiving an average volume of around $25 billion. And, also has been broadly holding onto the newly found momentum.
This has most certainly renewed the investor’s and traders interest in the market, however, these volume figures are only a fraction of what it used to receive during the boom period. The highest volume ever received or recorded in a single day is $68 billion on Jan 4th, 2018, when the Bitcoin price was hovering near to the $20K level.
Now, speaking about Bitcoin’s future price momentum, it is currently experiencing a stiff resistance at the $4,000 level. But, the RSI on the daily chart is in overbought territory, implying a short term pullback before starting to move higher again.
On the other hand, both 20 & 50 Day EMAs should offer strong support to the market and both are moving higher, which should aid the market to gain momentum. Underneath, the $3,800 level is massively supportive and should go below that level.
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