Bitcoin is currently trading at $66,800 after a week of wild swings. Prices have stabilized above the key support level of $65,000, showing resilience as the market takes a breather after weeks of heightened excitement. This consolidation phase below the important $70,000 mark suggests that BTC may be preparing for its next big move.
CryptoQuant data reveals that demand for Bitcoin remains strong even as momentum slows. This strong demand is a positive indicator and suggests that market participants are accumulating BTC at current levels in anticipation of further upside potential. Analysts are interpreting this data as an indication that BTC is poised to rise once market conditions are right.
The average trading volume for each 15-minute interval over the past 24 hours was 60 BTC, the highest locally in the past two months. This increase in trading volume highlights active participation and increased interest in the current price range, further supporting the possibility of a breakout.
The $70,000 resistance level remains an important threshold as Bitcoin stabilizes within this range. A breakout above this would likely attract more buyers and signal the beginning of a more sustained bull market. With these volume and demand metrics in play, BTC could soon capitalize on this momentum and aim for new highs.
Bitcoin trading volume shows strong demand
Bitcoin is showing resilience with a bullish outlook as spot trading volumes reach levels not seen in the past two months. Top analyst and investor Axel Adler shared key insights on X, revealing that the average trading volume per 15-minute interval over the past 24 hours was 60 BTC, a local high. This peak in trading activity indicates strong demand and strong interest in BTC amid recent market challenges.
This surge in volume may have come in the wake of Friday's FUD (Fear, Uncertainty, and Doubt) surrounding USDT, causing selling and hesitation among retail investors. However, the increase in trading volumes suggests that large investors, often referred to as “smart money”, are instead seizing the opportunity to accumulate BTC at current levels. This accumulation phase is often a precursor to large price movements, as these bulk buyers typically seek to secure positions before large price movements.
Analysts interpret this spike in volume as a sign that BTC is at a pivotal level, reinforcing the overall bullish sentiment in the market. If the trading volume remains high, the upward momentum could accelerate and the stock could break above the resistance level in the short term. The strength of demand under current conditions suggests that BTC may be poised for another rally, especially if it breaks out of key resistance levels such as $70,000. That's true.
If volume sustains these elevated levels, Bitcoin could confirm a bullish signal with a base of strategic accumulation and renewed investor confidence, pushing it towards new highs.
BTC support is solid
Bitcoin is currently holding steady above $66,000 after a period of volatility and market uncertainty. A key liquidity area, this level acted as a strong resistance point in late September, but has now turned to support, indicating the potential strength of the BTC trend. If Bitcoin can maintain its position above this important level, new all-time highs will become increasingly likely as buyer momentum builds and confidence returns to the market.
However, if BTC falls below the $65,000 mark, the price could enter a period of sideways consolidation in search of fresh liquidity. Such a consolidation phase would likely act as a market reset, giving bulls and bears time to readjust. To sustain the bullish structure, BTC must currently stay above the 200-day moving average (MA) of $63,250. This MA level represents a crucial threshold that market participants will closely monitor, as below it a change in sentiment could lead to bearish pressure.
In the short term, maintaining strength above $66,000 could be the catalyst for a continued upward trajectory, propelling BTC to challenge key resistance levels on the way to new highs. There is a gender.
Featured image from Dall-E, chart from TradingView
