The BTC (Bitcoin) Price increased overnight from $7500 to $9500 , According to Coinmarketcap increasing 23% in less than 24 hours.
The main three factors that run bitcoin rally at a highest spot exchange volume , it rise in institutional demand and also chase historical resistance levels.
Bitcoin exited the $ 9,500 level by spot exchanges, not the futures market
In the world of crypto spot exchange is refers to a platform that provide facility from fiat to crypto trades like binance and coinbase for instance users have facility to trade bitcoin with USD and any other stablecoin(USDT) or fiat currency without leaverage.
Spot exchanges volumes coming from are not inflated by leverage or borrowed capital. We can say that to increase retail demand Spot volumes typically demonstrate authentic and they often increase during an accumulation phase.
Suddenly increase demand for Bitcoin on Coinbase reached a point where for the temporary period exchange could no longer handle user activity .
In February 2020 remained open interest of Bitcoin futures above $1 billion and all the while its below $500 million. On BitMEX the open interest of Bitcoin , which refers to the total amount of short and long contracts open in the market
The dominance of spot platforms indicate that the upsurge from $7,500 to $9,500 was organic and relatively on futures exchanges volume of Bitcoin is low.
BTC broken Historical levels with ease
Benjamin Blunts as known as cryptocurrency trader according to him , the Bitcoin price when it first surpassed $8,000 broke all major historical resistance levels .
When BTC first hit $8,000, it went up to as high as $9,500 swiftly. Consequently when we see Bitcoin surpasses important resistance areas without any pullback, it indicates that a stronger upside movement awaits.
Institutional demand acted as a safety net it also help
In the first quarter of 2020, accumulation of Bitcoin by institutional investors is the key narrative around Bitcoin to raise the demand .
Grayscale said that 88% of investments came from institutions investors in the quarterly report of Grayscale, which operates the Grayscale Bitcoin Trust, . According to its CEO said at the same time the assets under management (AUM) of the Grayscale Bitcoin Trust just hit $3 billion volume.
This quarter “88% of inflows came from institutional investors. Investment firm said that institutional investors the overwhelming majority of which were hedge funds.