Even those who have been in the cryptocurrency space for some time are still in disbelief at how fast Bitcoin is going from 3. $ 000 on hiring a new one is all time high that same year.
But despite what the world sees as the biggest wave of FOMO in crypto, this is not reflected in the volume on the Coinbase BTCUSD charts. What exactly does this mean and is this a sign that the interest is not quite there yet, or is a huge burst just days away from the volume?
Bitcoin is just under 20. 000 US dollars traded for an eternity in the crypto era. Since the cryptocurrency is notorious for its volatility and wild fluctuations in price, stability, especially below an all-time high, is scary and confusing.
Almost every crypto market participant expected Bitcoin 20. Withdraw $ 000 and would never return once it got there. And while FOMO is mostly back in crypto, the top cryptocurrency has yet to take the key level out. But it didn’t correct either, despite the fact that almost every technical indicator shows shockingly overheated conditions.
There are also fundamental buy signals that have historically been incredibly profitable. The combination of bullish fundamentals and ultra-bearish short-term technicals has mixed analysts everywhere.
Some of the best-known traders, including Peter Brandt and John Bollinger, both recently warned of an impending correction – a correction that has not yet arrived. Elsewhere there are few areas where analysts and investors can search for information about the market. And because volume should precede price, our search began there.
« The constant buying at Coinbase for the past two months has been relentless, » read a tweet from Bitcoin expert Charles Edwards. Edwards created the Hash Ribbons signal mentioned above in reference to its excellent reputation for profitability.
« OG whales » are said to have built selling walls on the exchange in hopes of stopping further progress, but the cryptocurrency has caught on.
All of this buying talk would indicate an increase in trading volume on Coinbase, right? Not correct.
The timeframe with the longest stretch of green candles and the most overheated indicators nowhere near the level of purchase when Bitcoin was much cheaper – with a price below 5. 000 USD.
The sharp movement on Black Thursday caused many sellers to surrender, but buyers took advantage of the discount on the first cryptocurrency more visibly. The volume in this move is at least twice that of the recent rally.
If you focus on the bear market and rule out most of 2020 when the trend changes sharply or breaks out, the trading volume will be read considerably. The 2019 rally had increasing volume at each of its highs, which helped push Bitcoin to its yearly highs.
This just doesn’t exist in the current rally, but the reasons for it may not be as clear as the lack of breakout volume. For one thing, institutions don’t buy from Coinbase and could have the greatest impact on price increases. Wealthy buyers get their BTC in OTC markets so as not to move the price as much when making their massive purchases.
There is also far less BTC on exchanges like Coinbase that can be traded or sold these days. While « buying » might have been « relentless » because there aren’t that many sellers, price goes up without the volume to support it.
However, this is usually a dangerous situation if the volume doesn’t arrive soon. Currently, the largest 3-day volume during the last rally is red, suggesting that this may have been a reversal and that the sellers have taken control.
The opposite can be seen on Black Thursday, where after the initial surge, the volume of purchases skyrocketed as people bought BTC as cheaply as possible.
A falling or below average volume that is not in line with the price movement can signal a reversal. Is it what’s going on right now, or has the entry of institutions just clouded things over so much that it is now difficult to judge the market based on traditional technical data such as volume or indicators that seem to constantly fail to represent the cryptocurrency ? / p>
I am Tony Spilotro. I am an avid Bitcoin supporter and maximalist due to my distrust of society and concern for privacy, but I also firmly believe that XRP could be the most disruptive altcoin on the market. I am an aspiring technical analysis and trader with not only an interest in indicators and chart patterns, but also a focus on unorthodox methodologies like astrology, time, psychology and more. I take pride in the fact that my content is research-oriented, educational, and entertaining, and offers unmatched value to the crypto audience.
NewsBTC is a cryptocurrency news service covering bitcoin news, technical analysis, & forecast for bitcoin price and other altcoins today. Here at NewsBTC we want to educate everyone about Bitcoin and other cryptocurrencies.
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World News – UK – The recent Bitcoin outbreak is hardly a slip in Coinbase volume, but what does it mean?
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