Bitcoin Price Looking to Break Out Soon

Bitcoin (BTC) will soon reach the end of a consolidation period, namely a symmetrical triangle pattern, and break either up or down out of it.

This consolidation is the first that has followed last week’s news bombshell news surrounding Bitfinex and Tether. The news sent the entire cryptoasset market down, with altcoins especially hit.

BTC will break up or down from its consolidation, and has already had a deep wick to the downside briefly breaking out of the pattern. There was strong volume on this downside wick, but Bitcoin was defended here and the bulls forced the breakout back up.

29 april btc price(source: TradingView.com)

The overall trend seems bearish, however. The consolidation is formed off a clear bear pennant, and thus a break down is slightly more likely. What’s more, a break down would probably see the important $5,000 price level broken, which level has been solidly held ever since the April 2 breakout. $5K has already been tested once, during the initial dump last week - and repeated tests of support/resistance (S/R) zones weaken them.

Inversely, a break up would quickly encounter the strong $5,350 S/R zone, which took about three weeks to crack during April. Breaking that level again on a first test, off of a reversal, seems unlikely.

29 april btc price(source: TradingView.com)

Should BTC break to the downside, we must consider where it may land. The leading crypto has plenty of room to correct down without causing huge damage to the April long term uptrend - and in fact, many analysts had been calling for a deeper correction.

A first target would be the 50 day moving average (MA), green below. This average recent broke through the 200 MA in a “golden cross,” and it would be a good place for a retrace to land. Additionally, the important 0.618 Fibonacci retracement level happens to fall at nearly the same level.

29 april btc price(source: TradingView.com)

Ultimately, we should not be terribly concerned with a Bitcoin retrace unless price falls below the 200 MA. In fact, we could even welcome such a retrace: both March and April were fantastic months for crypto, and some cooling off before further gains would be normal.

(The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.)

Institutional Derivatives Volumes Went Cold After Crypto Market Crash: CryptoCompare

  • Institutional derivatives trading plummeted following March's crypto market crash according to latest CryptoComapre report. 
  • Mar. 13 generated the highest daily volumes in cryptocurrency history, generating $75.9bn in trades. 

Volume trading on institutional derivatives plummeted following the crypto market crash in March. 

According to the  CryptoCompare March 2020 Exchange Review, institutional derivatives volumes tanked following the market crash on Mar. 12, which saw the price of bitcoin drop as low as $3,800. Trading volume across institutional exchanges, including CME, declined more than 43% in March compared to the month before. 

According to the report, 

Institutional appetite for derivatives products appeared to decline rapidly following the BTC crash, with CME losing 44% of volume compared to February. Trading volumes totalled $7.36bn in March compared to $13.1bn in February.

cryptocompare march 2020 guideVolume trading across crypto exchanges in March 2020 | Source: CryptoCompare

The report found that CME options trading, which launched in January of this year, have not seen significant improvements in volume and are far from generating the activity seen on rival crypto exchange Deribit. 

Despite the market crash, Mar 13. brought about the highest daily volumes in cryptocurrency history, generating $75.9bn in trades. Lower Tier exchanges accounted for the majority of the volume at $54.3bn, while Top Tier volumes also set a record at $21.6bn in daily trades. 

According to the report, spot volumes surged in Q1 2020, with Top Tier exchanges increasing month-on-month since December 2019. Even with the economic uncertainty of the coronavirus, spot volumes for Top Tier exchanges increased 35% on average vs February.

While crypto experienced its single largest day of volume trading, March’s overall volume failed to reach the same levels of Dec. 2017’s crypto bull run.

The report reads, 

Despite the March price crash, volume levels for these exchanges still haven’t reached those seen in the Dec-2017 bull run. Overall, volumes across all Top Tier exchanges increased 8.0% to $288Bn in March.

Binance was the largest Top Tier exchange by volume in March, trading $63.6bn, an increase of 19.2% over the month before. OKEx generated the second-largest volume of $47.7 bn, down 8.2% from February. Coinbase experienced the largest percent increase in volume trading during March, generating $13.3bn, up 41.9%.

Featured Image Credit: Photo via Pixabay.com