- BTC’s surge raises concerns about corrections, but continued rally potential emerged.
- Data showed that BTC’s daily trading volume exceeded $10 billion, indicating continued market activity.
Bitcoins [BTC] The strong price increase has led many traders to believe that a correction is imminent for the king coin. However, new data suggests that BTC’s rally could continue in the future.
Turn up the volume
This was indicated by the rising volumes of BTC. According to recent data, daily trading volume for BTC averaged more than $10 billion in the second half of February.
An increase in daily trading volume for BTC generally indicates increased market activity and interest. Higher trading volumes can positively impact Bitcoin in several ways.
First, higher volume often indicates increased liquidity, making it easier for traders to buy and sell without causing significant price swings. This greater liquidity can attract more institutional investors, contributing to a more stable market.
Furthermore, higher trading volumes are often associated with greater investor confidence and participation.
Nevertheless, these volumes have not exceeded the ten-month high set on January 10, just before the ETF’s launch.
Source: Kaiko
At the time of writing, BTC was trading at $51,739.42 and the price was down 0.35% over the past 24 hours. The price of BTC fluctuated between the $50.0683 and $53.054 levels during this period.
The price showed multiple higher highs and higher lows, but no larger trend was established. The resistance level at $53,054 was tested multiple times, implying that it had weakened during this period.
The RSI for BTC was 50.52, indicating that momentum around BTC’s price was relatively neutral. If the bullish momentum shows an increase in the near future, the possibility of BTC’s price breaking past the $53,054 level will increase.
Source: trading view
What are holders doing?
For the price of BTC to grow further, there would have to be a huge interest from both whales and retail investors. According to AMBCrypto’s analysis of Santiment’s data, interest from both whales and retail investors appears to have waned in recent days.
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An increase was only observed in the addresses with 1,000 to 10,000 BTCs. Apart from that, all other cohorts saw a decrease in the BTC holdings they held.
This indicates a short period of profit taking being observed by Bitcoin holders across the board. It remains to be seen whether these addresses will wait for BTC prices to drop further before they start accumulating.
Source: Santiment