Bitcoin market update: BTC/USD on the verge of a major reversal
|- BTC/USD is back below $4,000.
- The growing trading volumes may signal the change of sentiments.
Bitcoin attempted a break above $4,000 handle; however, the upside proved to be unsustainable at this stage. BTC/USD is changing hands at $3,950, down 1% since this time on Sunday and 2% higher on a weekly basis. The first digital asset spent the previous week in a tight range and managed to clear $3,900 barrier late on Friday, but the momentum failed to gain traction so far.
Meanwhile, a cryptocurrency expert Kevin Rooke noticed a healthy growth of Bitcoin trading volumes. The figure has increased by 150% in recent five months while average daily trading volumes reached the highest levels since January 2018.
"Bitcoin's daily exchange volume is booming. Volume has increased by ~150% in the last five months. Average daily volume hasn't been this high since Jan 2018. Only nine days in the last 12 months had $10B+ in volume 5 of those days have been in March 2019," he mentioned in his Twitter account.
This development might signal that the market is ready to enter the recovery phase; however, we still need confirmation in the form of a clear breakthrough above $4,000-$4,200 area.
Looking technically, the local resistance is created by the recent high of $4,187. Once it is out of the way, the upside may be extended towards $4,850 (DMA200) and $5,000, which needs to be taken out to confirm the trend reversal. On the downside, $3,900 has now turned into support level, followed by a confluence of DMA50 and DMA100 at $3,700-$3,670.
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