Bitcoin price moves through key resistance – are the Chinese buying?

Bitcoin has moved past key resistance levels to reach the highest price since the 10th January. Much of the volume is coming from two Chinese exchanges – ZB and LBank – which have both exceeded Binance as the top crypto exchange by volume in recent hours.

At the time of writing, LBank is showing a 24 hour trading volume above $1 billion according to CoinMarketCap, roughly twice that of Binance. Both LBank and ZB have seen large volatility in trading volumes in the past 48 hours, and both have seen volumes above Binance at times during this period – as the below 7 day volume chart from CoinMarketCap below shows:

LBank is described as “a cryptocurrency exchange with it Services Centers based in China” on CryptoCompare. A question on CryptoCompare’s Exchange forum asks “has somebody tried it?” It has gone conspicuously unanswered:

There are two possible reasons for the high volumes – either the Chinese are trading a lot of crypto on those exchanges, or the exchange’s data is suspect. There’s every reason to believe the former.

However, the Chinese are not the only cryptotraders out there, and in the wider community there is talk that we could have just breached a key resistance level for Bitcoin.

Luke Martin, a prominent cryptotrader posted on Twitter recently that if the price gets above $3,700 then it could indicate positive momentum is building:

As we reported earlier in the week, Bitcoin’s hashrate has seen a marked recovery in recent weeks. This is a strong indicator that the miners are showing renewed confidence in a Bitcoin price recovery.

All these signs taken together suggests rosier times are ahead.