The world’s largest cryptocurrency, Bitcoin will not be going below the $11,000 range very soon as appetite for the cryptocurrency appears to have returned.
The volume of transactions that had dropped in recent weeks is back on the rise, according to a research team from Luno and Arcane Research who monitor the market on a weekly basis.
Bitcoin finally pushed above $11,000 again last week and held firmly throughout the weekend. The market is once again trending upwards, after a disappointing September. At press time, the price of the cryptocurrency was at $11,416 on the Coindesk Price Index.
The upward price push also means sentiment on bitcoin is back to positive. After staying in the fear area for more than a month, the Fear & Greed Index is now back above 50 and has entered the Greed area. The Index touched 56 on Sunday, which is the highest level since the brutal BTC drop down from $12,000 to $10,000 at the beginning of September.
Similarly, the daily volume which has dropped to levels last seen in February saw a spike over the past week.
“The market looks to be more alive again, and we could perhaps be looking at the start of a new trend for the bitcoin volume and the overall trading activity,” the researchers said.
There were concerns that the September bears will persist after BitMEX. A cryptocurrency derivatives trading platform was charged by the CFTC with illegally operating in the US. Concurrently, its executives, including Arthur Hayes, CEO were charged with violations of the US Bank Secrecy Act and are facing prison sentences. One of the Bitmex founders was subsequently arrested.
With the CFTC charge, Bitmex not only lost significant market shares in the futures market, but it also lost its role as the market leader in the perpetual swap market. Bitmex loss of market means that Binance is now the largest contributor to the total open interest in the perpetual swap market, accounting for nearly 25 percent of the market. BitMEX had 29 percent of the market prior to the CFTC charge, but it fell down to 20 percent by October 10th.
The researchers note that a push above $11,500 for bitcoin this week and a close above last summer’s resistance level would be a bullish signal.
