EToro could limit buy orders over the weekend as demand for Bitcoin and other cryptocurrencies soars


  • Etoro sees an unprecedented surge in demand for BTC as price inch close to $40,000.
  • Cryptocurrency trading platforms are struggling with limited liquidity amid soaring prices.
  • Bitcoin is eyeing a spike to $40,000 and beyond, following a recovery above $37,000.

The cryptocurrency market is in a bull cycle, bringing extraordinary demand for Bitcoin and other digital assets. Thus, eToro, a leading trading app, anticipates a surge in the market, especially for Bitcoin over the weekend session.

Traders likely to face difficulties due to low liquidity

EToro Ltd. sites possibilities of low liquidity hampering trading activities on its platform. Demand for the cryptocurrency is high at the moment, especially with BTC grinding closer to $40,000 after a gradual recovery from $30,000. According to the email sent to the clients by the Israeli-British company:

The unprecedented demand for crypto, coupled with limited liquidity, presents challenges to our ability to support BUY orders over the weekend.

In light of this, it may be necessary for us to place limitations on crypto BUY orders over the weekend.

This communication highlights the challenges trading platforms are facing amid rising Bitcoin prices. Earlier this week, the pioneer crypto hit a higher low at $30,000 but has since rebounded, stepping above $37,000. As the weekend draws nigh, BTC could spike beyond $40,000 again and perhaps set a new record high.

EToro could limit buy orders as it sees fit to ensure that operations on the platform are not interrupted. A spokeswoman from the company said on Wednesday that it is not eToro’s wish to impose restrictions, “but the crypto markets are incredibly volatile at the moment, and the weekends present the greatest challenges.

Bitcoin spike to $40,000 depends on one crucial level

The bellwether crypto is holding above $37,000 and exchanging hands at $37,150. On the upside, the next hurdle at $38,000 has been tested but not broken. Immediately on the downside, Bitcoin is supported by the 50 Simple Moving Average on the 4-hour chart.

To finalize the leg up to $40,000, Bitcoin must defend the short term support at $37,000 as well as the 50 SMA firmly. On the other hand, the seller congestion at $38,000 must come down.

Traders can also watch the Relative Strength Index because lateral movement at the midline will signify consolidation. Simultaneously, a trend toward the overbought region will hint at a possible run-up to $40,000.

BTC/USD 4-hour chart

BTC/USD 4-hour chart

It is worth keeping in mind that Bitcoin is exceptionally volatile at the moment. Therefore, declines toward $30,000 cannot be ruled out. Trading under the 50 SMA and $37,000 may call for more sell orders. If enough selling volume is created, overhead pressure will rise, forcing Bitcoin onto crucial support levels at $36,000, $34,000, and $30,000.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high

Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines. 

More Cryptocurrencies News
TON set to launch synthetic Bitcoin to boost its DeFi solutions

TON set to launch synthetic Bitcoin to boost its DeFi solutions

TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.

More Ton News
Maker Price Forecast: MKR could stage 40% rally

Maker Price Forecast: MKR could stage 40% rally

MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.

More MakerDAO News
USDT market cap crosses $120 billion as stablecoins continue their uptrend

USDT market cap crosses $120 billion as stablecoins continue their uptrend

The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.

More USDT News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP