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Cryptocurrency capitalization climbed 3.3% during yesterday’s trading. Bitcoin quotes closed the day above the general market in plus 4.4%, showing an increased demand for digital assets.
A number of analysts consider yesterday’s rise to be a correlation effect associated with the overall positive in financial and commodity markets.
The authorities of developed countries and the largest developing economies have given guarantees to investors and businesses that they will not introduce lockdowns during the New Year holidays. This option was possible due to the sharp increase in the incidence of Covid-19 associated with the rapid spread of the Omicron mutation. However, global death rates from coronavirus continue to update lows.
Bitcoin’s yesterday’s momentum changed the technical landscape. Quotes bounced off MA (200) and crossed MA (15), which indicates the emergence of a short-term upward trend. The problem is the fall in volatility, which “measures” the activity of speculators. They do not support the current impulse with volumes, which will not be able to overcome the flat channel without it.
The minimum activity on the Bitcoin network is confirmed by the Glassnode metrics. At the moment, the number of transactions on the blockchain has reached the minimum quarterly values. The figure below clearly demonstrates the correlation of this decline with the decline in the value of Bitcoin.
If the trading volumes do not increase in the near future, there will be a danger of a sharp drop in quotations. However, it can happen in any direction. Lack of liquidity is dangerous during panic sales, but it cannot prevent a pump.
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