Before
April, had been disappointing. Even its most active proponents were
cautious due to the rate at which it scaled up the price ladder. However, after
the primers of April, prices have been on a roll, more than doubling
from mid-March. All the same, a stand out in this march is the developments of
May-12.
On this day, prices surged to $7,503 before cooling off, closing at $7,000. But it was more about prices edging past $6,000 “mother of all” resistance while nullifying bears of Q4 2018 and more specifically, Nov 2018 hash-rate war instigated erosion. It was more to do with volumes.
The Significance
of May 12
On May-12 related volumes raced to $29 billion. This was monumental since such a high 24-hour volume was in January 2018 and the first in the history of.
This
new high surpasses previous record set on Jan 25, 2018 by $4.5 billion.
Notably, in early 2018, was at around $10,000 while on May 12 it
was hovering around $7,500.
“$29 billion in volume was traded today. The previous high of $25.5 billion was set on Jan 8, 2018. Technically, more could have been moved as prices have historically been lower. But today was a record volume.”
What About Fake Volume?
Even
so, the unregulated nature of the space means some elements could try to
manipulate trade volumes, something, Jonathan Habicht, founder, Blockfyre, a
crypto, and business notes.
All in all, the month of May is poised to be a . For instance, it is in May that the price of went above $7,000 and, if the momentum continues, may be exchanging hands at above $10,000 at the end of the month. Also, it’s also in this fifth month of 2019 that the 24-hour volume for the lead crypto surpassed $20 billion.
The vigorous activities around on May 12 were not only manifested by aggregated data from CoinMarketCap but also by individual exchanges. For example, on the same day, , CEO, BitMEX, tweeted:
“$10.03B in 24 hours. New record for BitMEX volume. Praise be to volatility and our wonderful traders!”
Prophesies Were
There Before the Rise
This
was a significant rise considering that BitMEX, a crypto platform specializing
in margin , is usually quiet on weekends like Sunday, May 12. Industry
experts prophesied the surge in price for and possibly the high
volumes.
On
May 10, two days before the meteoric rise in volume, , partner, Multicoin Capital, said:
“If can hold the $6,200 level for the next 24-48 hours, then the bear market is officially over, and I’m going to become a raging bull!” closed the day at $6,378 and has never looked back.”
On
BitMEX, however, it seems margin traders were caught off-guard by the rising
prices as $76 million of longs got wrecked.
A
noted:
“The market swings will continue that we know. I could never bring myself to pull shorts and longs. Just buy and cost average your losses over a set time and wait. You might win you might lose who knows.”
Perhaps,
traders and the general investor community will look back; mark out May-12,
noting that it was the day recovered after a 12-month bear grip of
2018. Bulls are back and Alex Krüger, a global markets analyst, is optimistic that
prices will edge higher in days ahead.
Published at Tue, 14 May 2019 20:10:13 +0000
Figure 1: ETH-USD, 1-hr Candles, GDAX, Fake Double Bottom
Figure 2: ETH-USD, 12-hr Candles, Gemini, Macro Bear Trend
Figure 3: ETH-USD, 6-hr Candles, Gemini, Fibonacci Retracement Trend