Bitcoin (BTC) is showing signs of consolidation above $34,000, having closed above this support line for six of the past seven trading sessions.
The world’s largest cryptocurrency is set to close around 27% higher for the month, marking another strong October in line with previous records.
Speculation around spot bitcoin exchange-traded fund approvals bade well for bitcoin in October, though as previously discussed, traders should be wary of an overbought position against the US dollar.
However, as Matteo Greco, research analyst at Fineqia International Inc (CSE:FNQ, OTC:FNQQF) stated, on-exchange volumes remain robust.
Greco noted that the cumulative daily cryptocurrency volume between October 22 and October 28 reached $24.12 billion, the highest level recorded since the end of March, showing a 48.5% increase from the previous week and a 119% surge from two weeks ago.
“This increase in volume is mainly due to heightened Bitcoin trading activity,” he stated.
Alongside the spot markets, bitcoin futures are also seeing heightened trading volumes, with open interest on the Chicago Mercantile Exchange recently exceeding $3.5 billion.
Year to date, bitcoin has ratcheted up over 107%, far surpassing the Nasdaq 100’s 31% gains.
Bitcoin appears to have decoupled from the traditional risk markets, a noteworthy trend given that the rise in US Treasury yields and ‘higher-for-longer’ interest rate fears have been persistent market headwinds.
At the time of writing, the BTC/USDT was swapping for around $34,250.
Bitcoin shows steady progress in 2023 – Source: tradingview.com
Looking at Ethereum, the second-largest cryptocurrency added approximately 7.5% in October, and remains 50% higher year to date.
As such, bitcoin’s dominance of the wider market has solidified above 50%, in a sign of consolidation and a flight to quality among investors in the volatile cryptocurrency markets.
At the time of writing, the global cryptocurrency markets had a total market capitalisation of $1.27 trillion.
Read more on Proactive Investors AU
