The markets are finally reacting to the anticipated pre-Bitcoin halving bullish run as the total Bitcoin (BTC) futures market soared past $20 billion USD, representing a three month high since the October volatile runs. OKEx reported a total volume of $5.579 billion USD in the past 24 hours with BitMEX reporting a total volume of $5.08 billion and Huobi closing out the top three at $4.780 billion at the close of the Asian trading market. Does the soaring volumes represent a possible breakout for BTC towards the key resistance level at $8,500 USD?
OKEx tops BTC Futures with over $5.5 bn in trade volume
OKEx, the top futures exchange according to Skew Markets, a top crypto analytics firm, recorded a three month high of $5.5 bn in daily traded volumes as the market pushed BTC back below $8,000 USD from key resistance levels at $8,400 USD –the highest price in 2020. The volatility in Bitcon’s price in the past few days caused an overall spike in the BTC Futures market soaring to over $20 billion USD, a high last seen during the Xi pump in October 2019.
Serious bitcoin futures volumes yesterday – $20bln+ on our radar (not an exhaustive count) pic.twitter.com/6kCSFRq6cy
— skew (@skewdotcom) January 9, 2020
BitMEX, the second largest Bitcoin derivatives exchange in reported volume, also topped the $5 billion USD mark to settle at $5.08 Billion, as at time of writing, representing a 2 month high since November’s spike to $6 billion USD.
With volumes on futures spiking, the market looks favorable to set the price burning back above the psychological $8,000 resistance area and a possible push towards the $8,500 USD region very much in sight. BTC currently changes hands at $7,880 support level and a stay above this level will signal a possible push towards the $8,100 USD.
Higher volumes, is $8,500 incoming?
Bitcoin futures topping $20 billion USD in a day is a significant indicator of the market coming back to life as bulls target the $8,100 USD minor support level in order to have any hopes of an oncoming bullish run heading to the Bitcoin halving in May. Following two consecutive days of massive BTC gaining, the past 48 hours have not been as fair to the BTC market as the coin’s price lingers on the edge of key support at $7,800 USD.
The daily relative strength index (RSI) oscillates above 50 but with a bearish trajectory after sustained buying pressure since the start of the year. A reach below support at $7,750 USD spells doom for the pioneer cryptocurrency and may see bears gain enough strength to recover towards the $7,400 support area.
However, the investors are showing willingness in participating in the market and the 20-day Bollinger bands are expanding with the price touching the upper band signaling a possible continuation of the bullish trend in the near-term. A retracement to $7,750 will set the coin in an accumulation phase, and a possible spike to $8,500 is in sight.
Images from Tradingview