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After a rather difficult first half of the year, the cryptocurrency market finally showed some signs of a very robust recovery, as the price of major cryptos like Bitcoin Cash, Ethereum and Litecoin saw a 5% value increase within just 24 hours.
This was preceded by a daily increase in the trading volume of all the major trading platforms, especially when it came to the large digital assets.
Within just seven days, the South Korean crypto exchange along with the BTC-to-KRW trading duo went from $3.1 billion to $4.4 billion. That was a whopping 44% increase in just a week but it didn’t last long as almost all cryptos took a hit after and Bitcoin Cash dropped 5%.
Bitcoin Cash 7x Increase in Volume
The price of Bitcoin increased by just 1% and investors thought that perhaps the price would move steadily and slowly up from there, thanks to the newfound BTC stability.
However, in order for BTC value to reach heights of 5% to 10%, there has to be a corresponding catalyst.
It’s probably going to be an uphill battle just to reach $6,500 and realize an upward trajectory in the short term, and this growth will have to be accompanied by a solid supporting volume.
On the other hand, major cryptos like Bitcoin Cash and Ethereum recorded positive growth in a matter of 24 hours, with Bitcoin Cash recording a 7x volume increase in that time period. This translated to a jump that went from $200 million to $1.4 billion, while Ethereum also recorded an impressive breakthrough growth rate of 4% from $200 to $208.
Experts predict that despite these positive changes, there’s a possibility of instability with Bitcoin in the short term especially during the month of November.
Some of the early signs of this sideways behavior include the squeeze through which Bollinger Bands are currently undergoing, which almost always leads to price volatility in the market. Now, the reason why analysts predict that this squeeze will last through November is because the same thing happened back in 2016 and even then it lasted for an entire month.
So it’s safe to say that BTC is going to have a hard time making it past the $6,800 mark in the short term judging from current conditions.
Instead, BTC might just remain in the same range for the month of November and although this might be bad news for those wanting to see the crypto market move past this price range, it’s still a better prospect than a downward spiral.
Where Is the Market Heading?
Right now Japan and South Korea are both dominating the market and are undoubtedly the largest crypto exchange markets in the world. So if BTC increases in those territories then we can expect to see a fair amount of short-term movement when it comes to the major digital assets.
Of course, all of this short-term growth is dependent on whether or not BTC pushes through the $6,800 mark, so we’ll just have to wait and see.
Cecilia Hines
I’m a senior editor managing the blockchain technology coverage, and I’m a co-lead reporter as well. I have graduated from Stanford University and have a master of economics from Columbia University. I work at exchange.blue. Disclosure: I own Bitcoin and Ethereum.
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