Re: Trading Volume of BTC dropped even when the Price is Discounted one!
⭐ Merited by Pursuer (2)
Hello BCTalkers,
There is one fact of BTC that I would like to share first. When the BTC drops in the price then there is observation that BTC gets more 24 hours volume than the previous stage as it is being traded at discounted price and thus people buy more and more.
However if you guys checkout the market right now then you will see that there is huge drop in the market 24 hour volume. Surprisingly the price per bitcoin is also lowest but still the traded volume is low.
I dont understand whats happening really? Is it like that people are truly panicking right now? Or is it something about BTC that we should know ?
There is one fact of BTC that I would like to share first. When the BTC drops in the price then there is observation that BTC gets more 24 hours volume than the previous stage as it is being traded at discounted price and thus people buy more and more.
However if you guys checkout the market right now then you will see that there is huge drop in the market 24 hour volume. Surprisingly the price per bitcoin is also lowest but still the traded volume is low.
I dont understand whats happening really? Is it like that people are truly panicking right now? Or is it something about BTC that we should know ?
Very good topic. I've notice this too few days ago. Volume is very low.
Ill try to answer the best i can:
1- volatility incrise volume. Now even the bitcoin is relatively cheap its volatility is very low (high for stock but for cryptocurrency 1% dayli is boring for those who are here beacuse of volatility higher then on stocks). It mean that noone is running to catch bitcoin. There are less emotional trades. Also there are less traders who are making volume buying and selling after 5 min. Less trading bots. Or mayby the same amount of trading bots but they make less transactions.
2- Bitcoin price is slowly getting to the point where is should be. When price is too high/low (20k for bitcoin in deceber) makes fomo investors jump, smart money leave, that incrise volatility what makes more traders jump in etc. Also when price is at ATH and ATL makes a lot of emotions and transactions. Now when bitcoin is sitting at current price since february every investor has his change to buy/sell at current price. We had massive bitcoin exchange over investors. Most of them who bought/sell since february is waiting for better gain/lower rebuy. Current price is not high enough for those who buy lower in last 3 months to sell and not low enought for those who sell in last 3 months. Volume will go lower and lower until whale will pump it or dump.
3- fighting with supports and resistance - that also creates emotions. Bigger walls are also located there what gives oportunity for whales to buy/sell big amounts without pushing price - whats create volume. Currently bitcoin is in the middle of closes support and resistance. 0 emotions.
4- those, who were panic selling bitcoin in january/february (december pump noobs who didnt know what bitcoin is just bought beacuse it was rising very fast) probably sold out. Now we have hodlers/traders ... and MTGOX
Just like trading any market. There is a cycle that needs to happen. Right now, let's just say that BTC is taking a break. Some may say that it is only gaining strength or sleeping, but then eventually it will wake up and do it's thing whether go up or go down further.
Alwais try to find economical explanation. How demand and supply works. Talking like "bitcoins needs break" "chart is doing someting" "its getting strength" and repetiting smart sentence from older traders will never learn you how market works and when to buy and sell.