Reports from past few days have shown that the majority of crypto exchanges consciously inflate daily trade volumes. In an attempt to look into the speculations, Open Market Cap (OMC) decided to make an analysis which led to conclusion that Bitcoin trade volumes are, as a matter of fact, 6-times that of Ethereum. Bitcoin trade volumes are expected to increase significantly once BTC price reach the $4,500 mark as the market turns bullish.
Minor Resistance Level
From all indication, BTC price will possibly reach a resistance level of $4,254 due to the emergence of the strong bullish daily candle from the lower trend line of the rising wedge. In the event that the $4,254 resistance level holds, the price is expected to return to the lower trend line.
Consequently, the findings made by Open Market Cap exposed the deceptions various exchanges employ for the sake of profit. The situation has gotten so bad that only 10 out of over 50 exchanges can be said to be honest in the broadcast of correct volumes of traded assets.
“Even when factoring out wash trading, the daily trading volume for Bitcoin on trusted exchanges is large enough to sustain a healthy market. For most small-cap coins, this is not the case. A 95% drop in trading volume means the market for most alts is extremely illiquid/non-existent.”
According to reports, only a few of crypto exchanges have accurate and honest records, they include: Winklevoss’s Gemini, Coinbase, Poloniex, Binance, BitFinex, Bitstamp, Kraken, BitFlyer and Bittrex.
Bitcoin Volumes Still Dominating
OMC trackers have confirmed that the actual market cap of Bitcoin is $70,899 billion with an $878 million trading volume in just 24 hours which has maintained stability all through. It is worthy of note that the majority of BTC trading is handled by Binance. The market experienced a bullish breakout trade on March 16 which raised Bitcoin to $4,200, but till now that amount is yet to be surpassed.
A Little More Push Is Needed
It is very necessary for bulls to push further to overcome this minor resistance level so that a new high at $4,500 may be ushered in. In effect, this will be the catalyst that will attract greater demand which will drive prices to $6,000.
A bull divergence appears to be in progress, and the reference bar in the short-term happens to be Mar 16 with 13k. The March 27 bar is also bullish but with light volumes at 7.9k. From the above information, the confirmation of Mar 4-5 bulls requires high trade volumes that exceed 13k as the Mar 25-27 three-bar reversal pattern is validated. This will enable risk-off traders to buy in dips with initial targets at $6,000 in a minor bull break6tout trade.