Coinbase recording $9 billion in volume on a single day is noteworthy because it is equivalent to the total volume for Q1 2020.
There is big demand for Bitcoin at $30ks, what’s next?
The price of Bitcoin briefly dropped below $33,000 yet again on Jan. 12, demonstrating weakening momentum after its initial recovery to $37,000.
A pseudonymous trader known as “Salsa Tekila” said that BTC could easily drop to the $31,000 to $32,000 range once again. He said:
“I think we can easily dive back down to $31K-$32K. I wouldn’t bet on it, but I’d consider buying depending on the context. So, not chasing current prices without another dive, setting alert below 33k and above 36k to pay attention, in between I don’t care. Good luck, don’t chase.”
Based on the high volatility around Bitcoin and the high daily volume of Coinbase, cryptocurrency researcher Larry Cermak said he expects Coinbase to reach a valuation of around $100 billion. He wrote:
“You really can’t ask for much more than the growth that Coinbase is experiencing right before the IPO. At this point, I am expecting the stock to trade at more than $100 billion this year. The momentum is there and the mania will happen IMO”
Will this trend get sustained?
After Bitcoin surpassed $40,000, it has been demonstrating 10% to 20% price swings on a daily basis.
Considering that Bitcoin is moving back and forth between the $31,000 support area and the $36,000 resistance area, the high level of volatility would likely continue.
Below $30,000 would likely indicate the start of a short-term bearish trend. Consolidation under $30,000 could cause the volatility to drop and the daily trading volume of exchanges to slow down in tandem.
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