Bitcoin 90-Day Volume Breaks Bullish Above Peak 2017 Levels

This time, the BTC market has made a complete recovery from the low volumes in January. The biggest boost comes from the newly launched futures markets, and the heightened activity on BitMEX. The leading futures exchange saw open interest exceed $1 several times in the second half of the year.

According to a market commentator, Charles Edwards, ’s 90-day volume recently broke as high as 40% above 2017’s peak levels. This, he says, ‘has powerful implications’.

The BTC spot market, which was a source of price discovery for years, has been supplanted by the larger, more agile futures market. Price discovery is happening both on BitMEX and Binance futures markets, as well as CME and Bakkt, which are attracting investors with cash-settled and physical delivered bitcoin futures.

Bitcoin and Tether Flows Signal End of Rally

The BTC market is also dependent on the interplay between exchange inflows and outflows. BTC movements to exchanges signal selling pressures. Tether (USDT) inflows however, are usually followed by a rally.

But the most effective combination for a bullish price move would be an outflow of BTC, while USDT liquidity grows. The “hodling” behavior on the side of whales and new funds to boost buying BTC positions.

In the past few months, the flow profile signals a potential price slide, due to diminishing sources of new liquidity. The attitude to BTC is signalling a return to pessimism, with the Bitcoin fear and greed index moving down to “fear” territory at 39 points.

For BTC, almost all factors that determine a rally period can shift within days or even hours. BTC has shown that even at depressed prices, a rally to a higher valuation can take just a few weeks to set up. The activity of USDT shifts quickly. Right now, each USDT coin moves about four times through the exchange ecosystem in a day. During peak activity periods, each coin moves more than 11 times per day, giving the 4.1 billion coins a magnified effect.

BTC turned down at the end of last week, abandoning the levels above $9,000. On Monday, the coin touched lows very near $8,700, without breaking down under that level. On Tuesday, the price started sinking again, to $8,775.59. The BTC market cap dominance shrank to 66.1%, as BTC erased its positions, while altcoins for now are holding onto relatively stable prices.


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