With Volume Still Down but More Bullish, Cryptocurrency Market Gains Stability
Over the past 48 hours, the cryptocurrency market has started to regain some momentum and stability with bitcoin recording three back to back daily buy candles. Significant increases in volume and price have been made by tokens such as OmiseGo and DigixDAO, yet it remains uncertain if the market can go through a new rally.
Usually, the stability of the cryptocurrency market indicates a possible increase for a bull rally in the short-term, particularly if some daily buy candles are uninterruptedly made. The Relative Strength Index (RSI) and moving average convergence/divergence (MACD) signifies impressive conditions for the BTC market, creating the possibility of BTC recovering to $8,000 in the next days.
However, one problem with BTC and the majority of cryptocurrency market is the low daily trading volume. Presently the daily trading volume of BTC is still down, less than $5 billion, a volume that is just 30 percent of January’s daily trading volume.
Tether (USDT), the cryptocurrency whose value is limited to the US dollar, is still the second most traded cryptocurrency in the market after BTC, indicating that several traders are using the US dollar-backed currency to limit the value of cryptocurrencies.
Given the impressive recovery of BTC from $7,300 to $7,700, it is possible that BTC could once again hit the $8,000 region in the next days, targeting a major support level at $8,500. Even though bears still have a strong influence on the market, the recent shift in the BTC price signifies that the majority of investors are still in doubt as to whether to sell various digital assets at the present rates.
