Centralized crypto exchanges have noticed a sharp rise in Bitcoin’s trading volume. This could be one of the signs that a correction is about to arrive. There are still many who are bullish on BTC, claiming that this rally will not end like the last one.
Bitcoin (BTC) price has been nothing short of impressive in 2021. While there have only been 8 days of the new year, the coin has not only continued its price rally, but it even doubled its 2017 ATH. But, according to recent data, that is not the only thing that got doubled — BTC volume on centralized exchanges is also twice the size of its past ATH, too.
Bitcoin volumes across exchanges has just doubled it's previous all time highest level. pic.twitter.com/Hl5T4N4Sck
— Mati (@MatiGreenspan) January 7, 2021
At the time of writing, the BTC price sits at $38,469. However, yesterday, January 7th, the world’s largest cryptocurrency by market cap briefly breached the $40k mark.
The coin has pulled back slightly, but its current price still makes it 33% higher than it was one week ago. More importantly, the coin’s behavior still doesn’t indicate that a correction will start just yet.
The correction is, of course, inevitable. History shows it, logic shows it, and centralized exchange movements also indicate it. In fact, the fact that the coin’s volume has doubled is believed to be one of the indicators.
Analysts disagree about whether BTC correction is about to start
Bitcoin reached and breached its 2017 ATH around December 16th, 2020. Between then and now, the coin’s ATH has doubled. But, while this is extremely important, another piece of information that matters greatly is the coin’s doubling time. According to the founder of Messari, Ryan Selkis, the doubling time measures the speed of parabolic moves.
The speed has been faster than now only three times in Bitcoin’s history — twice in 2013, and once in December 2017.
https://twitter.com/twobitidiot/status/1347349276712644609
All three times, the rapid surges were followed by sharp pullbacks, which indicates that the pattern will likely be repeated once more, after the BTC surge is done.
Of course, some still remain bullish, such as Vinny Lingham, the CEO of Civic. He said that retail traders are aware of what they are getting into this time around, and that they are much more cautious. As a result, BTC sits at $40k and there is “no bubble in sight,” as he states.
#Bitcoin at $40k and no bubble in sight. Traders that got burnt and left in 2018 are just coming back in. They’ll be more cautious. It’s the wave after that, incl. institutions that will create the peak of this new bubble/bust cycle. We still have time before it peaks. #Bullish
— Vinny Lingham (@VinnyLingham) January 8, 2021
Meanwhile, even the total crypto market cap has hit a new ATH, still standing above $1 trillion.
