Bitcoin has offered a relief rally after a slow start to the month. On April fool’s day , it was no joke that investors lost as Bitcoin dipped to retest its $6,200 support. This was a significant drop from current levels of $6,400 but a critical one to establish strong support.
Since then, Bitcoin has made a significant move upwards. At the time of writing this, Bitcoin has recorded a nice bounce rallying by nearly 8%. This has seen the digital asset break above $6,500 to reach a high of $6,600. The $6,500 resistance has been a key resistance and its breakout above this sets Bitcoin on a midterm bullish trajectory.
The retest of the $6,200 support comes just days after the asset tested the $6K support. The breakdown on March 30th that saw Bitcoin test the $6K support was confirmation that investors were bullish on Bitcoin. The test of yesterday’s higher low has been further confirmation that Bitcoin is strong and on an upward trajectory.
Further backing today’s move is increased daily trading volume. Although this has been dragging in the $36B region, it has increased significantly in the last 24 hours to reach $41B. When Bitcoin is on a bullish pattern, the daily trading volume reaches highs of $50B.
Data from Glassnode on daily exchange flows shows that investors are getting ready to hold. In the last 24 hours, investors have been taking out more BTC than putting in. This is hugely bullish for the coin.