Bitcoin broke well above $20,000 this week, signaling that the bull market was real and that the cryptocurrency was likely to go parabolic in the very near term if it hasn’t already.
The breakout was supported by the highest “Real Volume” since the June 2019 high. High volume during a breakout is a sign that the surge is real, and backed by buyers. However, because “Real Volume” has in the past only reached such points during reversals, it could also be an ominous sign that a correction is coming. Which is it, and what else can volume tell us about the currently trending cryptocurrency?
Bitcoin Real Volume Reaches Highest Peak Since June 2019 High
Bitcoin this week broke above $20,000 and in a flash found itself at a high of $23,750 before taking a breather. The breakout of the key resistance level and a clean clearing of $20,000 was a signal that the crypto bull market was back, and a surge in volume arrived to support the move.
The powerful burst of buying and selling with plenty of BTC exchanging hands caused a climax in Bitcoin “Real Volume” that’s the highest since the June 2019 high.
Back then, the cryptocurrency surged to $13,800. The next highest level of “Real Volume” came during the Black Thursday collapse, when Bitcoin once again bottomed under $4,000.
From the high of $13,800 to the low of $3,850 was roughly a $9,950 fall. From the $3,850 low in 2020 to the current peak of $23,750, was a $19,900 swing. Interestingly, that’s exactly double the length of the $9,950 drop to retest bear market bottom resistance turned support.
But that’s not the only correlation. Each of these major swings saw a sizable surge in Bitcoin “Real Volume” and so far, each instance aside from the current rally resulted in a reversal immediately after.
“Real Volume” is a tool developed by Bitcoin expert…