Bitcoin price fell below $ 9,500, losing momentum to $ 11,000 but still full of hope for the BTC spot market
Bitcoin price has witnessed some vast fluctuations recently. Yesterday, Bitcoin prepared to rise to $ 10,400 but encountered resistance and plummeted to a low of $ 9,500 this morning.
Bitcoin price will quickly approach key support levels
Some analysts said:
“If it fails to hold above this support level, the cryptocurrency could be positioned to see a major downside in the days and weeks ahead.”
At press time, the Bitcoin price is trading slightly lower at the current price of $ 9,500. This marks a $ 900 decline from the recent high of $ 10,400 when Bitcoin gained some primary buying pressure.
Many warning signs are suggesting that a sharp decline is imminent, as the funding rate for BTC positions also rises in the night just before the downward spiral of today.
An analyst is now paying attention that he is looking to shorten any amount of money in the short term, as Bitcoin has generated a terrifying downward momentum as a result of the recent rug pulling that caused it to be a break below 10,000 USD.
He explained while pointing to the chart seen below:
“Scary momentum, renewll be looking to sell the bounce BTC.”
This price volatility has caused Bitcoin to hover just above the critical short-term support of $ 9,300.
Crypt analyst Cred has shared this by explaining how Bitcoin’s reaction to the $ 9,300 price is a decisive factor for the short-term uptrend:
Still within daily range ($8600 support, $10000 resistance).
Testing midrange + monthly S/R at $9300s.
Failed breakout usually leads to opposite boundary, so I’ll look to sell the underside of $9300s if it fails.
Boring, but watching developments at $9300s before acting.
— Cred (@CryptoCred) June 2, 2020
If it breaks below this level in the near term, it can be positioned to see a quick move to the daily low of $ 8,600.
CoinMetrics: Before investing in cryptocurrencies, look at its trading volumes
According to CoinMetrics, businesses and financial institutions that want to invest in cryptocurrencies will first want to consider its trading volume.
At the aggregate spot market level, the report estimates that the Bitcoin spot market trading volume on major exchanges is at $ 0.5 billion a day.
BTC’s volume figures in different markets | Source: CoinMetrics
Although this represents a significant increase for Bitcoin, its daily trading volume on the spot markets is only $ 4.1 billion, still very small compared to the spot volume of other asset classes.
Daily spot volumes for BTC, equity, bond, and FX markets | Source: CoinMetrics
The CoinMetrics report concludes:
“Bitcoin, in its current state, is most comparable in size to a large capitalization stock than a distinct asset class. This could force a large institutional investor to see Bitcoin as only suitable for a portion of a small allocation to alternative assets. It doesn’t see institutions carving out a separate allocation to Bitcoin in its current state.”
However, this may change shortly. According to the report, if Bitcoin manages to maintain historical growth, its current daily volume from the spot market of $ 4.3 billion could exceed the daily volume of all US stocks in less than four years. Bitcoin will also take less than five years to exceed the daily volume of all US bonds, currently at $ 893 billion.
Prediction for BTC’s spot volume growth in the next 6 years | Source: CoinMetrics
The reports concluded:
“All facets of BTC’s trading volume have experienced exponential growth and, if sustained, will grow to levels similar to major asset classes.”
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