- After the recent BTC price drop, the trading volumes at the exchanges have been on the rise hinting at a trend reversal.
- Ethereum posts 8 percent intraday gains with non-exchange whales address continuing with heavy accumulation.
Bitcoin and the overall crypto market have been extremely volatile this week. However, the market is showing a 5 percent gain in the last 24 hours with Bitcoin (BTC) moving closer to $ 38,000. As of press time, Bitcoin is trading at a 4.17 percent high at a price of $ 37,983 with a market cap of $ 719 billion.
Furthermore, on-chain historical data shows that a reversal could be possibly on the cards. Based on the historical trends of Bitcoins trading volumes, BTC is forming a bullish momentum. On-chain data provider Santiment states that Bitcoin is witnessing a surge in trading volumes after the recent drop in the BTC price. This could result in a price reversal. Santiment notes:
Bitcoin’s trading volume saw a series of major spikes this past year, almost all after price drops. #Crypto #bulls look for lowering trading volume when $ BTC falls, as it indicates minimal interest by the crowd, and higher probability of a reversal.
However, it would be too early to say about any confirmed trend reversal at this stage. Based on the technical charts, popular crypto analyst Lark Davis explained:
Bitcoin has had a nice rally from the 33k dump back up to 39k, but we have still failed to break the down trend, still a few thousand away from the 50 day MA, and ages away from the real bull bear line (200 day MA ) at 49k.
However, in one of his latest tweets, Davis mentions: “If Bitcoin can get over 40k then it is game on !!!!!!” It remains to be seen if BTC can cross $ 40,000 this time.
Altcoins register stronger bounceback
While Bitcoin is making a good bounceback, altcoins too back it. In fact, Bitcoin’s competitor and the world’s second-largest cryptocurrency Ethereum has surged 8 percent moving past $ 2800 levels once again. Furthermore, ETH accumulation among non-exchange whales continues to stay strong despite this price correction. Santiment writes:
Ethereum whale holders continue trending assets toward non-exchange addresses in spite of the past months of volatility. The top 10 largest non-exchange addresses now hold 24.31M $ ETHwhile the top 10 exchange addresses are at just 5.83M $ ETH.
Apart from Ethereum, other altcoins are doing well too! Solana (SOL) is up 7 percent moving back once again above $ 100. This comes two days after the Solana-Ethereum bridge Wormhole faced a massive hack losing more than $ 300 million in investors’ funds.
Related: Solana outcry increases as wormhole bridge is exploited for $ 320M, SOL dips 12%
In the top ten list, Terra’s LUNA continues to show weakness. However, Polkadot has gained 3.5 percent today moving once again closer to $ 20. Outside the top ten, Hedera and Cosmos remain the top gainers with 10 percent gains each. A majority of the tokens in the top 100 list have been trading in the positive territory.