Bitcoin has yet again broken another milestone. The pioneer cryptocurrency has seen the volume of BTC moving across its network increase exponentially. This time, the seven-day moving average of BTC volume on the network has broken a record. Volume from this shows that as of yesterday, $188 billion had been moved across the network. This means that approximately 20% of the Bitcoin market cap was moved.
BTC transfer volume hits $188 billion milestone | Source: Twitter
The number of coins moved across the network for the seven-day moving average is approximately 3.6 million bitcoins. Going by today’s prices. The number accounts for both transactions moving between individual wallets. And volume moving to and from exchanges. Showing that BTC is not slowing down in its adoption. If anything, this shows that BTC is gaining more traction in the crypto space.
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Bitcoin To Shoot Higher With Volume
This movement sets bitcoin up for an exponential move upwards. Bitcoin’s price has always experienced an uptick in price whenever the volume shoots up. The chart below compares the various times when volume on the network has surged compared to the price at that point. An increased volume has always coincided with an increase in the price.
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An important point to note is this. While transaction volume is up, on-chain activity has been down. This suggests that the majority of this volume has come from large moves from a small number of wallets. As opposed to small moves from a high number of wallets. The on-chain data also puts that as about 10K and 12K bitcoins being moved at once from one wallet to another. Most likely movement from exchange wallets.
A more important scenario would have been if there were a number of small transactions making up this volume. It would mean that individual investors were actually moving their bitcoins across the network. And the directions of these bitcoin transactions would provide better indications for the overall market sentiments at that point. Nevertheless, an uptick in transacted volume has a tendency to push the price upwards.
Ready For Another Breakout?
BTC looks ready for another $50K retest from here on out. Indicators show current dip may be bottoming out. Priming the digital asset for another test of its recent high. Exchange reserves continue to trend low, showing that investors are still pulling out their BTC off of exchanges instead of selling.
BTC ready for another $50K retest | Source: BTCUSD on TradingView.com
Current movement patterns across the network still point to investors holding their coins off of exchanges. Flowing the opposite way that assets would usually flow in a bull market. This consolidation of BTC assets for long-term holding will definitely see an increase in the price.
Bitcoin price has now returned to a recovery trend after the last dip pushed it back down. Resistance at $47,500 is primed to follow this recovery from here. Market momentum will most likely be the defining factor of the next breakout.
Featured image from CNBCTV18, charts from Twitter and TradingView.com