Think back to December or November of 2017. The market volume was around $30B daily and the media was obsessed with reporting on cryptocurrencies. Everyone was talking about it. Buy pressure was extreme.
Now we find ourselves in a strange situation. The media has been much quieter in their reporting of the cryptocurrency space. Not as many people are talking about it either. The hype has, for the most part, died down. Yet, Bitcoin’s buy volume is currently at all-time-high on Binance — yes, believe it or not, much higher than it ever was during the mania phase.
— Galaxy (@galaxyBTC) April 2, 2019
Of course, we should be skeptical of assessing markets just by volume. After all, so much of the cryptocurrency market is wash trading and bots. However, the drastic increase in sheer buy volume — not just on Binance but across all exchanges — indicates that something very real is brewing under the surface.
All the major exchanges, like Coinbase Pro and Kraken, are reporting very high buy pressures with buy walls being propped up right before the Bitcoin rally this morning. Coupled with the fact that shorts are at a low we haven’t seen since February, this would indicate that this buying pressure just may be sustainable.
After a bearish beating for about a year and a half, investors are finally ready to move on. With so much happening in the space, it’s irrational to think that the bear market will go on indefinitely — just like it was irrational to think the bull market would go on indefinitely.
Now, it’s just a question of whether or not this momentum can be maintained.
Will the buying pressure sustain itself? Does Bitcoin (BTC) have enough movement now for another leg up? Let us know your thoughts in the comments below!
Images courtesy of Twitter.