2019-4-16 15:21 |
Identifying the end of the current cryptocurrency’s bear market is a challenge many are attempting to handle.
Major industry proponents have called the bottom on multiple occasions, only for the market to plunge further afterward. However, it does seem that the situation may have changed.
On April 2nd, Bitcoin entered into a long-forgotten positive rally, jumping from around $4,150 to around $5,000 in hours. The run continued throughout the rest of the week, as the cryptocurrency is currently sitting comfortably above $5,100. Naturally, this drove the entire market up, with almost all major altcoins marking serious gains as well.
One thing that has to be noted, however, is that the latest Bitcoin rally was also backed by serious volume. In fact, Binance, the world’s leading cryptocurrency exchange, saw Bitcoin volumes surging past its all-time high. The volume also surged on other platforms, including Bitcoin margin exchanges such as BitMEX.
Is Increased Volume Signaling the End of Bear Market?Typically, increased buying volume for Bitcoin is considered to be a bullish sign. It suggests that more people are getting into the market, interested to buy the digital currency. Moreover, however, it needs to be sustainable. Large volume can also be caused by whales buying in, but if it is spread over time and it is consistent it could signal that more people are getting involved.
On the other hand, it’s important to look at other market factors which might signal that the bear market has come to an end.
Another important factor to consider is the so-called market breadth. It’s a prominent indicator which takes into account the overall condition of the market. In the sense of cryptocurrencies, market breadth would also indicate how many of the other digital currencies are noting gains.
A positive market breadth occurs when more cryptocurrencies are advancing than declining. During the last rally, almost all of the top 100 digital currencies were trading in the green. While this is oftentimes the case when Bitcoin is rallying, it’s still an important consideration nonetheless.
Halving is IncomingYet another thing to be positive about when it comes to the cryptocurrency market is that Bitcoin halving is approaching. The event which will slash miners’ block rewards in half is scheduled for May 2020.
This will reduce the supply of Bitcoin on the market and if the demand remains the same or it gets higher, the price should in theory, increase.
Additionally, certain analysts have also outlined that Bitcoin typically starts to increase in value “around 1 year on average before its halving date,” which is particularly close.
Image: PixabayThe post Do the Recent Trading Volume Highs Mark an End to the Bitcoin Bear Market? appeared first on NewsBTC.
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