The amount of trade in Bitcoin has recently increased, suggesting that the market may be moving in a bullish direction. According to data from CoinMarketCap, Bitcoin’s trading volume has surpassed its yearly average, reaching a high of almost $71 billion in the previous 24 hours.
When a chart that shows the 365-day Simple Moving Average (SMA) and the 30-day SMA of Bitcoin trade volume was examined, the trend indicates an increasing trajectory in the 30-day SMA. With the exception of a brief period around the time of the LUNA disaster, the 30-day SMA constantly remained below the 365-day SMA during the bear market era.
This indicates a recent spike in network activity and a strong rally that sent Bitcoin’s price past the $31,000 mark. Many variables, such as increased institutional adoption, regulatory clarity, and the rising popularity of Decentralized Finance (DeFi) applications, have been linked to the growth in trading volume and network activity.
Report also established that the institutional investors’ increasing adoption of Bitcoin is a significant factor causing the spike in trading volume. Many popular businesses, such as Tesla, MicroStrategy, and Square, have invested billions of dollars in Bitcoin over the past year, citing the cryptocurrency’s potential as an inflation hedge and a store of value.
Legal Factors, Rising BTC Trading Volume Linked To The Increase
Legal certainty has contributed to increased Bitcoin trading volume and institutional acceptance. Investor trust in the market has improved due to many countries friendly cryptocurrency market signal, notably the United States, which are recently providing more precise standards for regulating cryptocurrencies.
The regulatory climate for cryptocurrencies has improved, which has increased investment and trading activity. The current spike in Bitcoin trading volume has also been attributed to the rising popularity of Decentralized Finance (DeFi) applications. DeFi applications, which are based on blockchain technology, give customers access to financial services without the usage of intermediaries like banks.
According to Vijay Ayyar, CoinDCX’s Head of International Markets, while in an interview with CNBC, explained that the announcement of the slate of spot BTC Exchange Traded Fund (ETF) by bigger companies did not only contribute immensely to the bullish performance but the entire cryptocurrency space as a whole.
Rekt Capital, a freelance cryptocurrency analyst, observed that the BTC had escaped the multi-month downtrend. But the sustainability of the current momentum is still being determined. On the other hand, Alexandra Pankratyeva, a cryptocurrency analyst with Capital.com, has pointed out that the BTC has gained over 60% from 2022 till April 2023 amid the U.S. Federal Reserve’s rate increase, confessing that the intended surge is most expected.
Latest Bitcoin Price Analysis Shows Mixed Hope For The BTC
Within the week, the BTC maintained a market capitalization of $596.448 billion, with $23.749 billion in trading volume in the last 24 hours. At a current price of $30,681,10, the BTC has 19.411 million coins in circulation. Data from Binance shows that the BTC’s 200-day moving average is moving upward, a pattern it has been assuming since the 19th of June this year – which further proves Bitcoin’s strong nature.
The most recent BTC’s Relative Strength Index (RSI) is currently at a neutral zone of 30-70, indicating that the price maintains a neutral stance. At the time of writing, there appears to be a bearish sign, which is very visible within the 14 candles, indicating a low possibility of a price reversal.
Analysis from the CryptoNews platform wrote that the failure of BTC to exceed the $30,750 price mark may result in price reversion to its support price level of $29,800, or $29,300, representing 23.6%, using the Fibonacci retracement level.
However, a freelance cryptocurrency price expert, Ali B., have advised traders to look out for the $30,750 price mark. According to Ali, this will be Bitcoin’s most important price level in the next 24 hours. Meanwhile, as at the time of writing, the BTC has 21 million tokens in total supply, with over a million BTC tokens, meant to be mined in the year 2140.