Bitcoin’s price revival from the low of $9,320 on 29th August is supported by an increase in the rate of highs of 30 months. However, weak trading volumes suggest that the recovery could well be short-lived for BTC and a returning decrease to $9,750 could be possible in a day or two.
Weekly chart indicators label this as a bearish movement. To revive this short-term bull move, a high-rate UTC close of over $10,956 (lower high of the bear move) is needed. This is doubtful, even with the growing interest in trading Bitcoin, whether on exchanges or using the Bitcoin Loophole and the likes.
Although for a full bull revival, a weekly Sunday UTC close of over $12,000 is desperately needed. Bitcoin’s share of the whole cryptocurrency market has reportedly achieved an all-time high of 30 months that stands above 70%.
As of exchange performances, BTC is trading on Bitstamp at $10,350, increased by 6% on a 24-hour basis, followed by hitting a high of eight-day at $10,350 earlier today. On that level, bitcoin gained 12.7% increase of the month low of $9,320 on 29th August.
BTC has found takers continuously even at the rate of $9,000-$10,000 over the past nine weeks. This resulted in rallying recovery which nevertheless ended up with lower highs. Lower highs are a sign of bull market exhaustion.
The gains observed in the value of BTC over the past 4 days don’t seem to be sustainable or stable but could possibly be stretched a little far. This is because it has increased to 70.10%, the highest since March 2017 as stated in a report by CoinMarketCap.
The mark was set at 69% as of 29th August when Bitcoin’s price decreased to its one-month low that was less than $9,400.
A lot of observers consider price gains like this to be sustainable if they are supported by an increase in the dominance rate. This shift suggests that money is invested in BTC for a long run by traders and not just to fund purchases of other cryptocurrencies.
However, trading volumes suggest another side entirely as the recovery observed in the past four days could be expected to be short-lived. We at Top10BitcoinRobots will keep a close eye on what comes next, and so should you.