According to CoinMarketCap.com, Bitcoin (BTC) posted volume near $9.9 billion in each of the last two trading sessions.
Looking back over the last twelve months, the last time volume reached that level was in May. Back then, there were back to back days of volume over $10 billion. Bitcoin (BTC) was trading around $9,700 at the time. Interestingly, the last day when volume was above $10 billion was May 3 of last year. That day coincided with a major top (Figure 1).
The recent spike in volume may be due to whales selling and asset managers buying. We suspect that the recent big volume could also validate the idea that technicals are shifting.
We see evidence that diagonals may become more relevant than they have been over the last 12 months. So if Bitcoin (BTC) continues to break diagonal resistance, that could lead to bigger moves than people expect.
Bottom Line: If $3,933 acts as support in Bitcoin (BTC), $4,697 could be next. Big players are mixing it up near $4,000, and there are a lot of the reasons to bet on the bulls.
If you agree or not, come express your view in the Crypto.IQ Trading Room.
Join me there to see if professionals are buying dips.