Bitcoin Traders Are Trying to Push the Token Above $41K
Scroll DownThe final days of September have not been kind to Bitcoin investors. We have seen Chinese regulators doing their best to prohibit Bitcoin transactions across the country, and the regulatory climate in the United States does not inspire confidence for the near future. There was also the disorderly launch of Bitcoin as legal tender in El Salvador, which was supposed to lift the token's status as a legitimate currency through mass circulation, but it has failed to lift investors' spirits.
Bitcoin has not been able to float above the $50K trading level for very long; in fact, there have been times when selling volume has hinted at the possibility of BTC dipping below $38K. This situation has prompted bullish traders to attempt a comeback, but it would have to be done one step at a time. The first order of business would be to move Bitcoin closer to $41K so that a baseline trading level can be established.
This week, the bullish case for Bitcoin continued to attract more trading volume. Bitcoin's volume has been on the decline since reaching a 52-week high of nearly $14B, but it has still managed to retain its volume level. On the week-to-date chart, we can observe a few key trends at play:
The bullish case for Bitcoin would be maintaining its volume for the week despite a downtrend in the last three months. We do not know why Bitcoin has managed to maintain its volume when so many cryptocurrencies are falling.
The only explanation that we can come up with is that some of the recent gains in Bitcoin are still fresh in investors' minds and they are not fully liquidated. It is also important to note that the crypto market has not been as volatile as it has been in the past few weeks. In fact, Bitcoin prices have been on a relative downtrend as well, but it has been offset by positive volume.
The bottom of the price correction in Bitcoin may be near and the crypto market's overall market outlook has improved over the last two weeks, hence the improvement in volume.
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