Despite the short rally in the stock and crypto-markets, most analysts believe that the worst is yet to come. New data show that the Bitcoin dynamic signal has reversed. This means that at last a Bull-Run kicks in?
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The Bitcoin Bull-Run despite bullish forecasts come from?
Yesterday published data from the look into bitcoin.com-Creator, Philip Swift, the trend reverses, perhaps, finally. The Momentum in the Bitcoin network has reversed, which could indicate the beginning of a new Bull Runs. Why is that?
Because we see an increase in the daily BTC volume in the Chain, which is preceded by all previous bull markets.
Swift writes:
“The volume has increased in the last few days, certainly, because the prices capitulated, and in a range have moved.”
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Why is Trading volume important?
The Trading volume is an important technical indicator, the analysts and traders are watching for confirmation of a trend. Since it is the total activity of a plant or of a market that shows an increase in the volume: More people to make more transactions.
As Swift explained in this article:
“The Bitcoin network-Momentum considers the relationship between the price of Bitcoin and the BTC value of the daily transactions that flow through the Blockchain.”
Looking at the chart below from the year 2018, to recognize the relationship between price and volume. Early and late bear markets show a decline in volume, while bull start markets with increasing Trading volume.
The BTC Trading volume helps investors to identify the market dynamics. Unlike the price movements of a small group of whales it can confirm that the General Trend of bull most of the time.
When the Trading increases in volume, normally follow the prices, as we have seen, and Vice versa. So, these new data from lookintobitcoin.com could an imminent Bull-Run signal?
Watch the volume on reputable exchanges
Swift seems by what he sees to be certainly encouraged.
He adds:
“Although compared to previous cycles, more funds outside of the Chain be kept, I would still be some significant increases in the daily volumes in the chain, such as Smart Money accumulates in front of the new Bull-Run battery.”
He comes to the conclusion that the Trading volume metric, this Time may not be as reliable as before:
“It will be interesting to see whether this metric is still valid, as the market has developed further.”
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Certainly, the last Bitcoin began bull runs before the Background of a global pandemic or economic recession. The crypto markets will be the bloodbath the total can not escape.
Nevertheless, it is worthwhile to keep the Trading volume in the eye, as it is perhaps a clue may be whether a new Bull Run is imminent. Swift therefore recommends:
“In addition, it also pays to have an eye on a credible Trading volumes”