Delphi Digital Claims Bitcoin (BTC) Bottom Has Passed

Delphi digital suggests that more active trading of Bitcoin suggests that the market bottom is already behind us. Bitcoin had a surge in volumes at the end of October especially during the last volatile week after Xi’s comments on blockchain as we reported in the latest bitcoin news.

BTC managed to get away from the monthly low under $7,500 and recovered to above $9,000. The leading cryptocurrency avoided the most extreme scenarios of dropping to the $6,000 range but failed to rally to higher levels up to $16,000. Delphi Digital issued a report where they warned that the changed sentiment and activity don’t guarantee a permanent recovery of the sentiment. Another slide and stagnation of volumes could spell a return to a new period of the prices falling.

The volumes of Bitcoin expanded from the regular daily activity of $15 billion to above $32 billion during the peak rally. The volumes were fed by inflows of Tether to multiple exchanges and some skeptics saw the markets weakening again. Over the course of this year, BTC saw multiple distinct periods according to Delphi Digital.

There was almost no action happening and the volumes froze returning to as low as $5 billion in less than 24 hours. The volumes and prices from April moved upward and during the summer, there was a price peak on record volumes followed by a slide and steep sell-off. Strong exchange flows suggest that the profit-taking is present or is simply a panic-selling moment as in September when BTC dropped to the $8,000, both these movements were present.

The yearly development until October 2019 relied heavily on BitMEX and the open interest broke above $1 billion on June 26 for the first time. Since this date, the accumulation of $1 billion in open interest led to a massive change in direction and liquidations. The interest in BTC was also in the domain of professional and large-scale investors.

The indicators such as Google search and the new account registrations showed that retail interest for BTC was slowing down. In the meantime, the bitcoin whales appeared with the capability of affecting the markets dramatically. The altcoins didn’t manage to create additional optimism because the rallies in May and April didn’t transform into an altcoin season.