Bitcoin Forum

Hi. Recently started trading Ethereum and Bitcoin so this all new to me. I was wondering what the decrease in trade volume could indicate? Seems like some a sign of big movement in one direction soon, but I'm just guessing there. Any suggestions?

Cryptocurrencies trading is a risky activity obviously, you should aware what's going on in the market, current price seems on the brink due to Chinese regulators investigating cryptocurrency trading and shut down most exchanges in there. That's why, bitcoin, ethereum and most coins prices decline rather than increase.

decrease in trading volume can mean a number of things. but what i mostly experience is that whenever prices of bitcoin or other altcoins are stable and with little action the daily volume also drops. that just shows that fewer trades have been made and that is only logical since smaller price movements means no opportunity to trade and make any profit.

Low volume just means it's quiet. It's when volume comes back in that you want to pay attention as that will be the first sign of the next move. Pay particular attention if that volume fails to move the price to start with as that is large players accumulating a position.

Low trading volume occurred since China government halt cryptocurrencies trading in exchanges.
China seems want to ban bitcoin which the most significant act to bitcoin all the time, and the market shrugged it off.
Cryptocurrencies prices may fall once more if China ban mining activity as well.

Don't think too much but goal for long term. Low volume doesn't mean too much in terms of Bitcoin and Ethereum trades, at least as far as my own view is concerned on daily, weekly or even on monthly basis. Well it's kind of unusual if we see such low volumes on bitcoin for long period in the first place.

Anyways how do you define low trades volume? On what range of percentages you are considering that the volume numbers is low?

My guess would be that it's the calm before the storm, due to the uncertainties regarding China. Most people already have taken position in the last few days, may it be fiat or crypto. But right now everyone is just waiting and watching in which direction the market may move next.

For the low volume could be many reasons. Users are probably more careful now and they are closely watching the market to see how the situation will develope but at the moment without talking much action.
Some are expecting further price dump although I don't think this will happen and as soon the optimism returns to the market the volume will rise.

It happens that there are altcoins out there with low trade volume but when theres a lot of interest in that coin, volume is relatively high. If you are a day trader, better look for coins that have higher volume like 500 and up, but if you plan to hold for a long time, dont mind the volume and focus more on the development of that coin.

Now again bitcoin value dumped to low so he don't need to trade with low or high now. Just monitor the bitcoin and altcoins value now to this month end. There are many adoption and investment on bitcoin recent days last dump happened due to China.  You can buy the bitcoins with the little fund now then it will increase the high again.

At the moment, nothing is predictable. And, it's not recommended to step into large investments since still you're a beginner. Nobody knows what would be happed in the future, but, yesterday, one of my friends had tighten up over $4000 in three Altcoins. Which means, perhaps, this may be a good time to invest too... However, they all depend on your plan.

when trading volume turns low, that's when we have to follow it not to sell the stock you have, but recommend to buy it, because when the volume of bitcoin turns to high it will spur to pump the price to be more than what you can hope .. this is very fun when we can see what happens in the next hour

Markets tend to exhibit high volume during range expansions (leaving a trading range) or at major price pivots (tops and bottoms). In the former case, high volume occurs because e.g. everyone shorting the top of the range has to reverse positions, helping the price to establish the new trend. In the latter case, high volume occurs because every buyer has found a seller, and every seller has found a buyer; this means capitulation has occurred and a price reversal is likely.

So, with that in mind, low volume indicates consolidation. It usually means that you are entering a trading range, which in turn means that potential trading profits will continually decrease until the range is broken again. This is where higher leverage and oscillators come in handy, for range trading.

What you are telling is correct but no one knows which direction it will move, as most of them are saying that before bitcoin move to high it will touch low of 3000 price so it can be that also.

That's why don't care for prices with low volume.

Some traders are out of the game becuase extreme price fluctuations happened last weeks. This affected the trade volume negatively. And others are not hurrying up for new positions in their trading plan.

Low trade volume mean; the price will drop due to uncertain news/event, and for now it comes from China.
Low trade volume mean; do not buy a big amount at the moment as the price may drop again.
Low trade volume mean; waiting for the prices fall to the bottom and buy some coins as much as you can.
Patience is the key to get profits in trading.

I think it could be better if you can hold them for a long time since it is a low trade volume expect the small movement of the price.
If you are holding bitcoin and ethereum for trading i think much better to hold them for a long time like right now the price of bitcoin and ethereum was drop so better to keep holding them until you see the price was increases back again and make a good profit just don't sell it if you are not getting any profit..
The risk of this may low unlike you are trading in new releases coins and fast movement in short period of time those will hardly to make a good profit because sometimes its a trap and after you buy the price will decrease..

As a person with a short stint in local stock markets, large fluctuations in price make traders excited since it means money to them. If there's anyone who's benefiting in such a crazy fluctuation (finex has $4970 high and $2900 low today) it would be these traders. The low volume is caused *probably* by uncertainty of what direction the market is going to take, and we do know that uncertainty in the market, in the recent times cause a drop of interest in trading assets that are affected by such.

The decrease volume will be indicating if a lot of people are trying to cash out their money or that will be a better to call that as the profit that already got by them all. But it can be considered as the market stress too, finally all depends on your understanding about that.

There are a lot of factors why a coin is moving in a certain direction. I suggest for you first to study the market cycle. There is a lot more than just trading volume that would indicate where the price is going. There is a lot of manipulations as well because of the whales so if you cannot take the risk of your investment going down like $500 or more in just one day then this is not for you. If you have strong risk appetite then maybe you can start studying fundamental and technical analysis and market psychology.

The volume is the total number of bitcoins traded in past 24 hours. I am not sure what you're talking about with the other stuff.

I agree with you,
  I also do not have an interest in coin that has a low volume despite having a cheap price. because the lack of volume in trading can lead to adverse effects on market price movements.

These factors includes low volume due to more dumping rather than pumping of price value, and if you have to study the market value you can't predict the actual situation specially when fluctuations isn't that certain to conclude. As others been saying patience is the key to have good trades, so waiting can be that challenging behind all obstacles and you should for the right price to come.

Low Volume On down Price That mean We will see Good Pump Soon
Low Volume On Up Price That mean We will see Dump Soon
Keep My Words In your Mind

I usually do not like to trade bitcoin to altcoin because the risk is very big but for the etherium the risk os lower. The principle is just the same with trade btc fiat " buy in low price and sell higher " .

I believe at this stage most traders are beginning to be extra careful, monitoring the news and watching out so they don’t get burnt. Same as you, due to the recent FUD, you will definitely be very careful so you don’t end up making the wrong decision. Most times, there are some whales that arrives to stare the market up a little, until we start seeing lot of supports and activities coming back in.

This is a technical question and related to VSA (volume analysis), i would love to answer this one. Hope you know that volume means participation, but you need to know whether the participation happens is in the side of buyers or sellers. yes you have guessed it right, Naturally Low Volume comes before any bigger price breakouts or breakdowns,so you can ready to expect the big movement soon. But you should be smart to predict the price movement before it happens and there are many technical tools available to find it out , i use bollinger bands in combo with VOLUME analysis to predict the BIGGER PRICE  MOVEMENT.

Does anyone here take low trade low market cap coins into account when looking into prospective investments? Curious as to the large margins for gain / high risk that seems to be present with these types of coins.

I will definitely agree to what all you have said. I think low volume trade is neither profitable for short term investment nor for long term investment.

You need to invest your money at that place where there are good chances of having a good money. Low volume trade itself means that only few people are investing and trading in it.

Well i was reviewing this thread question and i found your answer quite interesting. Great to know that even you are following VSA trading method.I am not a newbie but i am a intermediate trader and i know that when there is a low volume, either a trend continuation is going to happen or the trend is going to reverse after making a new top. Your answer shows that you are a pro trader and let me know if you can help me in learning and Trading using VSA techniques.

In my opinion, a decrease in volume simply indicates the total number of bitcoins which were used to exchange a certain currency, in cases of buying and selling.

For instance, a certain coin decreased in volume to $1000/btc 24 hour, this simply implies that around 1000 btc were used to trade this currency within the last 24 hours, that is my understanding.

There's a crackdown in China and South Korea which is causing the downward volume.  Some coins are junk coins and will go down in volume once the excitement about the ICO is over.

When volume is dropping in an upward trend it means the number of buyer is dropping and that is an indication that the trend is coming to an end and when is happening in  a downward trend is an indication to buy. You can actually using volume indicators like MACD to spot this in the market.

quite the opposite :D
the "Crackdown" in china actually cause a huge increase in volume because prices fell and that means a lot of action in the market from traders selling, shorting, buying the dips,.... and that happened for every single coin that dropped in price, their volume went up.

there is the most hated thing in trading that is "hold", then after long wait price never move and finally cut lose. After cut lose the price then creep up. very prestasi .....  ;D

the decline in trading volume will greatly affect market activity and prices, usually if the volume goes down the market will be a bit quiet and will not have much price movement so for me it is the most boring moment in trading.

When volume seems to be coming down, it could be time to take profit or the opposite and sometimes it could be as a result of FUD

an effective FUD will cause panic, the panic leads to selling and that means a high volume. so in case trading volume was low, you can be sure there is no FUD around or if there is, it is not an effective one.

about the "take profit" part I have to say it is not always like that. sometimes it is an indication of slow down which is a good time to take the profit before the correction. but also it can mean an accumulation phase has started, they usually have a high volume but it will always be much lower than the rising or dropping times.

Trading with a coin with a low volume can affect your day trading because it will be so slow to just earn money.

what I know when volume trading goes down, especially buying trading may have fallen in price. especially in selling trading continuously rising thats a sign of bearish market. but you need to analyze the market for sureball 100% that you know that will happen in the market.

It is difficult to know what will happen if you are not the creator of it, dad things happen only when there are rumors around it that cause investors to panic and sell it to influence the market.

we do not know what will happen to the crypt if it is going to be succesful or if we do not know the price it does not know if it increases the price it's better to have longterm and just handle our bitcoins.

The negative effects of China's policies and the events of October are one of the reasons that affect the crypto market.

I am avoiding selling my coin now.
I am keeping some of my fiat now to guess the right time to buy (pump).

I am HODLING my current BTC now,
wait for the forking and waiting for an idea with that one for other coins.

I think you are somehow misguided. If you just compare the prices of last two years there would be a difference of about $2k. Things are not so easy when you are holding because you always becoming worried of your loss or profit in upcoming time.

But holding seriously yield more and you are getting much more profits, just have to hold your emotions too.

Yes I agree with you emotion control greatly affect loss and fortunately someone in trade.
Being patient and staying calm in holding a coin is the key to luck. we see the price of Etherum is starting to fall but I am sure all will be back to normal and if you buy it now within 3 weeks ahead I am sure you will benefit.

Decrease in volume of coin usually because many traders who sell the coin because they feel they've got enough profit or they need money immediately. a decrease in volume occurring within a market usually signifies that there will be decrease in the price too, but the time of the price drop will depend on the fundamentals of the coin. If there any bad news the price drop can happen very deep.

yes it could be down and also could be up too, yes we must get ready aja accept what has happened.

Ether's inflation is "linear," meaning it issues the same amount each year. This year, we started at around 75M and add 15M, for inflation of 20%. If we still had the same rules in 10 years, we'd have 225M, add 15M, giving inflation of 6%. The etherum's inflation rate will probably reduce once it transitions to proof-of-stake. Many people have the impression that it will stop entirely, but that's not set in stone at this point. The proof-of-stake algorithm is still in development so we don't know exactly what it will look like, and some of the existing proof-of-stake currencies do have inflation. Some ethereum developers have proposed zero inflation, others think a small amount of inflation will be better. What they have all promised is that the inflation will be no higher than now.
Note that with fiat currencies, inflation generally refers to price inflation, not absolute currency amounts. As long as you don't grow your currency faster than you grow your economy, prices are stable.

Low trade of volume cause of many factor's no.1is the value of coins in the market is drop down,second is the investor sell  their coins in low price no one hoard it.no.3 because of coming hardfork people will panic,and they sell all there investment .but all this things will be controllable by staying calm and wait for the proper time in trading.

Yes I agree with you. There are many ways that you said about low trade of volume. But all of them just the prediction. You have to keep calm and get more information to give your decision.