Bitcoin is currently still stalling just above $29,000, making this one of the longest stretches that the digital asset has spent at this level. This constricted price range usually means that there is muted interest in the digital asset right now; however, the daily trading volume for Bitcoin suggests that this may not be the case.
Bitcoin Daily Trading Volume Starts Off With A Bang
As the crypto market enters into a new week, it has started out bright for Bitcoin, the largest cryptocurrency in the space by market cap. On Monday morning, the daily trading volume of BTC saw a significant 82% increase, bringing it to over $10.8 billion during this time.
Now, this pales in comparison to some of the digital asset’s larger daily volumes but it is a step up from the slow momentum that was seen during the weekend. Additionally, this jump in trading volume could signal renewed interest from investors, and depending on where this interest sways, it could be very good for the digital asset.
BTC daily trading volume spikes 82% | Source: Coinmarketcap
For Bitcoin, a rise in daily trading volume could either mean that investors are buying or selling at the moment. If they are buying, then it could point to a recovery for the cryptocurrency. But if they are currently selling, then this sell pressure would lead to a further decline in price.
Given that the price of BTC is already seeing a slight recovery in the early hours of Monday suggests that this could indeed be bullish for the asset. BTC already rallied as high as $29,600 before being pulled back down. However, maintaining the $29,300 support shows bulls are still very much in control.
Can BTC Bounce Above $30,000 From Here?
Looking at the current sentiment analysis from the Bitcoin Fear & Greed Index, the market is primed for another bounce. With the index sitting at a completely perfect neutral score of 50, it presents an opportunity for bulls to quickly take control and push the price of BTC above $30,000 once more.
BTC Fear & Greed Index sitting at neutral | alternative.me
However, just as the index sitting as neutral could be good for the asset, it could also turn bad as well. This is because bulls and bears are now at a stalemate and either site could easily push the price of the digital asset in their favor, depending on which side applies the most pressure.
Nevertheless, BTC’s trend on Monday has shown a rather bullish than bearish momentum, which means a recovery is more likely than further correction at this level.