Bitcoin Grows 4% More But Still Struggles Below $10,000
Bitcoin (BTC) prices recently surged, enjoying a decent rally. However, it still failed to break through the $10,000. According to the data of CoinDesk, the cryptocurrency increased as high as $9,842.3.
With that, the digital asset had appreciated 3.9%. And this happened following a drop to as low as $9,472.25. Bitcoin continues to struggle in recent months. And it fails to surpass a convincing break above the key $10,000 level.
Even though Bitcoin has successfully surpassed this price several times before, it has often lost its gains, going back reasonably quickly.
Invest Diva’s CEO, Kiana Danial, gave a statement about this matter, “The $10K level has become even stronger than before after being tested three times over the past month.”
Then, cryptocurrency hedge fund manager BitBull Capital’s CEO, Joe DiPasquale, also weighed in, saying that the $10,000 is significant resistance. Also, he said that Bitcoin must cross $10,500 and form support at that level to establish in the 5-figure price range firmly.
In addition to that, Danial explained that if Bitcoin breaks over the $10,000 level, the next long-term resistance levels will be at the 50%, 61%, and 78% Fibonacci retracement levels. And this tracks the crash of BTC from the highs of nearly $20,000 back in December 2017 to the lows of $3,000 by the end of 2018.
Then, the price levels are at $11,400, $13,375, and $16,000, respectively.
Still, a break under $8,600 might open doors for a pullback once again towards $7,700 and $7,000, based on Fibonacci retracement studies.
Crypto Derivatives Volume
Elsewhere, crypto derivatives’ monthly volume boosted by one-third in May. As a result, it hits a new all-time high of $602 billion, based om U.K.-based data aggregator CryptoCompare.
The latest record is a shade past the last record in March of $600 billion. But derivatives have become ever more popular and now account for 32% of the crypto market, up from 27% last April.
When it comes to the percentage, the monthly volume increase in May for derivatives was six times larger compared to the rise in spot volumes, which climbed 5% to $1.27 trillion.
Binance, OKEx, and Huobi accounted for approximately 80% of May’s derivatives volume combined. Then, for percentage terms, CME saw the most massive monthly increase of 59%. However, market leader Huobi dwarfed its $7.2 billion in volume. And it posted a 29% monthly gain in volume with $176 billion.
Aside from that, institutional options volumes on the regulated platform CME hit record levels in May. Thus, it increases a massive 16 times from April’s figures to a new monthly high of 5,996 contracts traded. Also, the platform broke a new daily record on May 28, with CME trading 1,418 Bitcoin options contracts. In May, Derebit’s options volume more than doubled to $3.06 billion.
Stablecoins
Moreover, a report from CryptoCompare noted several shifts in the world of stablecoins, with USDC and PAX seeing massive declines in volume against BTC. And this is with USDC declining 78% this month while PAX was down 97%. USDT represents the remarkable majority of stablecoin to BTC trading with 98%.
