- BTC’s surge raises correction concerns, but sustained rally potential emerged.
- Data revealed BTC’s daily trade volume surpassing $10 billion, hinting at continued market activity.
Bitcoin’s [BTC] surge in price has caused many traders to believe that a correction is imminent for the king coin. However, new data suggests that BTC’s rally may be able to sustain itself going forward.
Turning up the volume
This was indicated by the rising volumes of BTC. According to recent data, in the latter half of February, the daily trade volume for BTC averaged over $10 billion.
A surge in daily trade volume for BTC generally indicates increased market activity and interest. Higher trading volumes can positively impact Bitcoin in several ways.
Firstly, elevated volume often suggests heightened liquidity, making it easier for traders to buy and sell without causing significant price fluctuations. This increased liquidity can attract more institutional investors, contributing to a more stable market.
Moreover, higher trading volumes are often associated with increased investor confidence and participation.
Nevertheless, these volumes have not exceeded the 10-month highs achieved on 10th January, just before the ETF launch.
Source: Kaiko
At press time, BTC was trading at $51,739.42 and its price had declined by 0.35% over the last 24 hours. The price of BTC has hovered between the $50,0683 and $53,054 levels during this period.
The price exhibited multiple higher highs and higher lows, however there was no larger trend established. The resistance level of $53,054 was tested multiple times implying that it was weakened during this period.
The RSI for BTC was at 50.52 suggesting that the momentum around BTC’s price was relatively neutral. If bullish momentum sees an uptick in the near future, the possibility of BTC’s price breaking past the $53,054 level will grow.
Source: Trading View
What are holders up to?
For the price of BTC to grow further, there would need to be a surge in interest seen from both whales and retail investors. According to AMBCrypto’s analysis of Santiment’s data, interest from both whales and retail investors seem to have died down in the last few days.
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There was only a surge observed in the addresses holding 1,000 to 10,000 BTCs. Apart from that, all other cohorts saw a decline in the BTC holdings that they possessed.
This suggests a brief period of profit-taking seen across the board from Bitcoin holders. It remains to be seen whether these addresses will wait for BTC’s prices to further decline before beginning to accumulate.
Source: Santiment
