Bitcoin volume is extremely low right now. It’s still higher than the 2017 bull run but way down from March 2020 highs (im assuming that was the RONA Crash of 2020?)
What effect does this low volume have on price? I understand what it really does is allow bigger swings to happen as less money is needed to move the market.
I’m curious if anyone can give me some insight?
Dollar volume on the April/May run to $10K was nearly as high as the March dumps. High volume comes with trends, low volume with consolidations. That's what we're in right now, a low volume range consolidation as the market waits for direction.
Low volume usually means "calm before the storm." Bigger swings require breaking out of range. Traders have stops outside the range, leading to high volume when breakouts occur.