Bitcoin, which has struggled to hold on to previous attempts to gain a footing above $4,000, has today rallied to a little over the psychological barrier, gaining almost 4% over the last 24 trading period.
The bitcoin price rise comes as bitcoin daily trading volume tops $11 billion, the most seen in a 24-hour period since last April, when the bitcoin price was trading at over $8,000.
Meanwhile, the price of ethereum, Ripple’s XRP, litecoin, and bitcoin rival bitcoin cash all rallied along with bitcoin, each gaining between 5% and 18%, and adding some $6 billion to the total value of the world’s cryptocurrencies.
Bitcoin trading volume reaching near 12-month highs has been taken as a sign that investors aren’t losing interest in bitcoin, which remains the world’s largest cryptocurrency by market capitalization by some margin, despite the bitter so-called crypto winter that is crippling the bitcoin and cryptocurrency sector.
Bitcoin trade volume had closely aligned with the price until bitcoin cash civil war inspired market rout in November, which saw bitcoin trade volumes hold despite the crypto market rout.
However, as bitcoin ticks higher, its market dominance (defined as bitcoin’s share of the total cryptocurrency market value) is dropping and has hit a new 2019 low of 50.6%.
The sudden bitcoin and wider cryptocurrency price rally comes after data this week suggested bitcoin and crypto investors could be about to again flee from the market following flat prices over recent months.
The latest technical data now shows the long-term buying demand for bitcoin has deteriorated, which could mean selling pressure could increase—bitcoin’s Moving Average Convergence Divergence indicator has been steadily falling since mid-February, Bloomberg first reported.
The bitcoin bulls have been out in force over the last few weeks, making bold predictions about how high the bitcoin price could eventually go and jumping on news that the crypto winter could be coming to an end.
The bitcoin price, which began February at a little over $3,400 per bitcoin, added some 11% over the month, breaking its six-month losing streak.
“The entire industry is ripe to resume a path to lower prices,” Bloomberg Intelligence analyst Mike McGlone wrote in a recent report. “Conditions are akin to November, just prior to the collapse. Prices are consolidating within narrowing ranges, with a few sharp bear-market rallies that appear fleeting.”
However, one renowned economic historian this week said he was “very wrong” about digital currencies like bitcoin and that current bitcoin and cryptocurrency prices remain “very far” from zero.
Niall Ferguson’s comments follow positive signals from some tech industry heavyweights who have piled on the bitcoin bandwagon, despite the market sell-off.