Bitcoin (BTC) rallied ahead of the weekend, re-crossing the $8,000 level in a fast recovery that can be viewed as a positive sign for price strength. BTC maintaining the $8,000 level is also considered instrumental for an altcoin rally.
Just a few hours ago, BTC broke out over $8,020.50 on Bitmex, with premiums on other exchanges as well, and general prices well above the $7,900 mark. The late Friday rally happened at high volumes of above $24 billion in 24 hours, with 75% of it coming from Tether (USDT) trading.
The BTC recovery boosted the prices of altcoins across the board, erasing losses from the Thursday sell-off.
For BTC, this is the second recovery of a few hundred dollars, after the price tanked to $7,600. Previously, BTC crashed to $7,300, only to climb back above the $8,000 range once again. BTC prices repeat the positions of May 2018, with a slight gain year-on-year on some days.
Bitcoin transactions also remain high, recorded at 390,000 in 24 hours. Mining is also near a peak, recently touching 57 EH/s. The recent price rally led to renewed wallet activity and a transaction backlog of 27,000 transactions.
The fast recovery coincides with returning bullish moods, considering $8,000 as an intermediary level to the $10,000 landmark. However, there are expectations that futures markets may affect the price, and bring another rapid crash.
In the past week, Bitfinex has increased its share of trading, as well as Coinbase, Kraken, and Bitstamp. All of those markets are highly regulated, although BItfinex stands out due to the criticism surrounding price manipulation.
The BTC price may still fluctuate, and the levels are highly unpredictable. BTC is still seen as capable of pulling back by 30%, as the price has performed in the past. The current price rally is happening on significantly higher volumes even in comparison to the peak rally at the end of 2017, with a much larger fraction of stablecoin trading, potentially allowing for higher liquidity and stronger recoveries.