Bitcoin is currently trading at $66,800 after a week of high volatility. The price settled above the crucial support level of $65,000, indicating resilience as the market takes a breather after several weeks of heightened excitement. This phase of consolidation below the key $70,000 level suggests that BTC may be preparing for its next major move.
Data from CryptoQuant reveals that demand for Bitcoin remains strong, even amidst cool momentum. This strong demand is a positive indicator, indicating that market participants are accumulating Bitcoin at current levels and anticipating further upside potential. Analysts interpret this data as a signal that BTC is poised to rally once market conditions align.
The average trading volume during each 15-minute period over the past 24 hours was 60 BTC, representing a local high over the past two months. This high trading volume highlights active participation and increased interest in the current price range, supporting the potential for a breakout.
With Bitcoin consolidating within this range, the $70,000 resistance level remains a pivotal threshold. A break above it will likely attract more buyers and signal the beginning of a more sustainable rally. With these volume and demand indicators in place, BTC could soon capitalize on this momentum to target new highs.
Bitcoin trading volume indicates strong demand
Bitcoin is showing resilience with a bullish outlook as spot trading volume reaches levels not seen in a couple of months. Chief Analyst and Investor Axel Adler Shared critical insights about XIt revealed that the average trading volume per 15-minute interval over the past 24 hours was 60 BTC, representing a local high. This peak in trading activity indicates strong demand, indicating strong interest in Bitcoin even amid recent market challenges.
The surge in volume comes on the heels of Friday’s FUD (Fear, Uncertainty and Doubt) surrounding USDT, which could have led to selling or hesitation among retail investors. However, the increased trading volume suggests that large investors, often referred to as “smart money,” are instead seizing the opportunity to accumulate Bitcoin at current levels. This accumulation phase often serves as a precursor to a larger price movement, as these high-volume buyers typically seek to position themselves ahead of significant price shifts.
Analysts interpret this spike in volume as a signal that Bitcoin is at a pivotal level, reinforcing bullish sentiment throughout the market. If trading volume remains high, this could fuel bullish momentum and support a breakout above near-term resistance levels. Strong demand under current conditions suggests that Bitcoin could be gearing up for its next rally, especially if it breaks through key resistance levels like $70,000.
If trading volume maintains these high levels, Bitcoin could confirm bullish signals and push toward new highs, driven by a foundation of strategic accumulation and renewed investor confidence.
Strong BTC support
Bitcoin is currently holding above $66,000 after a period of volatility and uncertainty in the market. This level, a significant liquidity area, served as a strong resistance point in late September and has now turned into support, indicating potential strength in Bitcoin’s direction. If Bitcoin can maintain its position above this crucial level, a push to all-time highs is increasingly likely as buyer momentum builds and confidence returns to the market.
However, if Bitcoin price drops below the $65,000 level, we could see the price enter a period of sideways consolidation as it seeks new liquidity. This consolidation phase will likely be a reset for the market, giving the bulls and bears time to recalibrate. For the bullish structure to remain intact, Bitcoin must remain above the 200-day moving average (MA), which currently stands at $63,250. The moving average level represents a pivotal threshold that market participants closely monitor, as a decline below it can change sentiment and invite downward pressure.
In the near term, maintaining strength above $66,000 could be a catalyst for a continuation of the bullish trajectory, which could push BTC to challenge key resistance levels on the way to new highs.
Featured image by Dall-E, chart from TradingView