Over the past three days, the volume of major cryptocurrencies and the rest of the crypto market has increased substantially, from around $10 billion to $13 billion.
Bitcoin, in particular, has seen a large increase in volume from $3.1 billion to $4.3 billion within a week, by more than 40 percent.
Led by the positive price movement of Bitcoin and its noticeable increase in volume, the value of other major cryptocurrencies like Stellar (XLM), Cardano (ADA), and Tron (TRX) has increased by the range of 3 to 5 percent.
Ripple (XRP) surged by more than 12 percent over the last 24 hours, nearly doubling its volume from $400 million to $800 million.
Where is Market Headed
According to DonAlt, a recognized cryptocurrency trader and technical analyst, Bitcoin is currently bull-biased supported by an increase in volume over the last several days.
But, to confirm a strong short-term movement, BTC will have to break out of the $6,500 resistance level with comfort to potentially test the $6,800 resistance level, which has been broken once since August 9, in mid-September.
“[Bitcoin is] in a very clean trading range. This is what I’m currently looking at and why I don’t really see much reason to be bearish,” DonAlt said.
On Coinbase, Gemini, and Kraken, three of the most heavily regulated and strictly compliant cryptocurrency-to-fiat exchanges based in the US, BTC is still being traded at around $6,390, unable to break out of $6,400.
Hence, while the sideways market of BTC is positively affecting major cryptocurrencies and tokens, in order for BTC to initiate a rally in the same magnitude as the movements portrayed by Ethereum, Bitcoin Cash, Ripple, and Stellar this week, a clean break out of the $6,500 mark will be required.
The abrupt increase in the volume and price of major cryptocurrencies and small market cap cryptocurrencies demonstrate the willingness of investors to take high-risk, high-return trades despite uncertainty in the market.
Renewed optimism towards the market triggered by various key developments including the Bakkt Bitcoin futures market launch in December and the establishment of Fidelity’s digital asset custody services has allowed the market to engage in a minor recovery.
Exchanges Slowly Recovering
As reported by CCN on November 6, a new crypto exchange rankings report published by Blockchain Transparency Institute showed a recovery in the volume of major trading platforms. Binance achieved a daily trading volume of $1 billion, which is more than the combined trading volume of five of the top 10 cryptocurrencies in the global market combined.
Tether (USDT), a stablecoin backed by US dollars at a 1:1 ratio, has also demonstrated a surge in volume to over $2.7 billion, suggesting that the holders of USDT are selling the stablecoin to invest in major cryptocurrencies like Stellar and Cardano.
Interestingly, most of the volume of cryptocurrencies that initiated upward price movements on November 6 has come from cryptocurrency exchanges in South Korea.
Featured Image from Shutterstock. Charts from TradingView.