- 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.
Courtesy: Santiment
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 $ETH, while 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.
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