Crypto Spring? Bitcoin Trading Volume Hits 15-Month High
Could it be possible, that spring is finally in the air, and after 15 months of misery, we are seeing the first green shoots coming through? Certainly, March has seen impressive daily volumes and price seems to be tentatively holding around $4000.
Marching Through March
Bitcoin’s daily exchange volume has been showing steady and sustained growth; an almost 150% increase in the 5 months since October 2018’s lows. In fact, the average daily transaction volume hasn’t seen levels this high since January 2018.
As cryptocurrency commentator, Kevin Rooke, notes on Twitter, only 9 days in the past 12 months have had over $10 billion in volume. Of these, a full five have been this month and we still have nearly half of the month left. The majority of the others came in February, so volume-wise, things would appear to be regaining momentum.
Bitcoin's daily exchange volume is booming 🚀
Volume has increased by ~150% in the last 5 months 📈
Average daily volume hasn't been this high since Jan 2018 👀
Only 9 days in the last 12 months had $10B+ in volume 💰
5 of those days have been in March 2019 🍀 pic.twitter.com/0VE9bX9iGQ
— Kevin Rooke (@kerooke) March 16, 2019
For the moment, bitcoin price 00 also appears to be holding around $4000. It jumped from just below this level to reach a high of $4077 over the course of just a couple of yesterday’s very early hours. This morning saw $4000 tested again (from above this time). Though support has been found, for the time being.
Are we seeing some consolidation on last month’s surprise gains, with both volume and price set to crawl inexorably higher? It would be contra to the beliefs of many pundits, who predict either further drops or trading within a narrow band for the foreseeable future.
An Unequivocal Maybe
Certainly, we haven’t seen the significant price gains needed to start popping the champagne corks again just yet. But neither are the gains we have seen insignificant. As our Bitcoinist technical analyst Filb Filb noted yesterday, if we can flip $3950 from resistance to support, it puts us in far better stead.
Whether the increasing daily volume and price can mutually support each other to bigger and better things remains to be seen.
Winter might not be over just yet, but perhaps it’s time to start eyeing that lightweight jacket in the closet that didn’t see the light of day at all in 2018.
Is increasing bitcoin trading volume a bullish sign? Share your thoughts below!
Images courtesy of Shutterstock