Bitcoin Forum

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?

If the buy and sell walls are pretty big then it might just be the price temporarily stabaliding/consolidating for a few days. It's moved from 9400 to 9600 recently so it might just take a break from. That movement and remain steady at this price.

If it stays like this for too long then a breakout is likely because a divergence could be formed...

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.

By Bitcoin Volume, you mean daily trade volume right?

It's something normal and i wouldn't be worried about it given the current situation. That aside, whenever the market is moving sideways the volume is always low. Very few people want to trade when there is no much price change. People prefer trading in trendy markets (bullish or bearish)

Indeed bullrun is worth waiting to come, but what's making the hard thing that's making it harder to come nowadays was due to covid-19. Most traders we're not able to plan their moves towards crypto because of this underlying problems. It really has affected many businesses particular on fiat exchange, how much worst with cryptocurrency. That's why I am sighting it as primary reasons why the price of btc wasn't able to spike commendably.

I'll give you a guess, we arent doing anything much but cruising at this price doing very little.   Small volume matches exactly with the low confidence I see on the outlook and prediction for price direction, the market has no real trend here besides maybe a really long term bullish view if you like.

We arent doing anything week to week, low volume makes sense.

https://talkimg.com/images/2023/06/12/A40Cd.png

Here we are once again repeating the prior weekly bar ranges.  More when or if we ever do something different :p

Low volume tends to keep money slowly moving. If you are gonna refer to a certain diagram. Most low volume will likely pull down the price. Why its happening? The demand got lower and people tends to keep their money for a while instead pushing it back on the market.

Demands last bull run is highly appraise so we cant compare the volume right now which we only get an average lows especially right now we are having a very bad economic crisis.

Or it might be that faking volume is at its lowest now.

May 8th
https://web.archive.org/web/20200508082042/https://coinmarketcap.com/currencies/bitcoin/markets/
Now:
https://archive.vn/geLKU

Example:
Known shitty exchange:

https://i.imgur.com/I5DwKLd.png

https://i.imgur.com/gzZKxwt.png

Since coinmarketcap changed its algorithms it makes little sense to try and fake the data that much, so putting an end to the volume race ..or should I call it farce... ;D
How the hell would you lose 98,2 % of the volume in a month? ;D

The most obvious reason would probably be the pandemic that happened and right now still going on. There are way too many people who got affected by the virus that couldn't be in the market so by the result of that people got out of the market and moved to other stuff, not just investment but regular stuff payments as well since we are all affected by this.

However that is just one approach to it and not the whole story, I am sure halving played a big role as well, less mined means less sold as well I know the volume is much lower than that difference but that is another part of it.

When you combine these two together and get one or two more reasons like this you got yourself a lot less volume and the current situation. It is effecting the price in the way that we are not sure what it will do and since volume and liquidity is low I am afraid it might do anything.

Almost forgot about the recent changes in coinmarketcap.  ;D This is definitely one of the factors. There were so many shit exchanges faking volume and it looked like coinmarketcap's way of ranking them back then lead to more and more of that practice.

Coinmarketcap used to show fake data a lot.

I tried to warn people about this with my posts but of course I can only reach a handful of people.

Maybe they still show fake data.

You can't know if binance is not faking its own data or not neither.

Your safest bet is, don't take it* too seriously.

*By "it" I mean any crypto related data.

I think the volume of bitcoin is still there but the price now is so low maybe the one cost of bitcoin low price is the pandemic about covid many are worrying now. So some holders selling their bitcoins because they are worried about happen. So I think that is the one reason.
But I think bitcoin price will gonna be move up just have patience.

but bitcoin volume is not low at all! it is actually pretty high these days.

comparing the volume at times like this where price is not making any move in the history, we can clearly see that the volume this time is a lot higher than any similar time which indicates a lot of accumulation and day trading is taking place.
it doesn't mean much about the price though, price only goes high when the buys increase and those who sell each time a rise happens either stop or be crushed by the sheer number of buyers which would eventually happen like all previous times.

Low volume means that sellers had dried out and buyers hope to get Bitcoin at a cheaper price. Volume is higher then at any other time beside this year. We will get new all time high volume sooner or latter.

;D ;D This is absurd with P2PB2B exchanges because their volume always exceeds the limit so you can say this is very bad as I saw before, but now Coinmarketcap is better than now so that such a volume will not be repeated again. maybe. ;D

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All of this certainly has an effect especially with the current bitcoin volume so I think it's too low but strong at $ 9k + and of course this will be a stronger resistance after the breakout.

volume changes exchanges over long term. For example during 2017 moon run, Bitfinex was the biggest exchange. Now the biggest exchange is Binance and Coinbase. So you need to compare volume of Bitfinex in 2017 to Binance volume today. And they are close to the same, volume high.

No one can give you right information as why the bitcoin volume is low. The good thing about low volume is that bitcoin can pump quickly and also dump quickly. If you ask what will be price of bitcoin due to this low volume, I am afraid no can tell precisely. You need to watch the market and see the movements on daily basis.

I totally agree that right now there is not a low that is significant and should be worried, I remember when bitcoin moved around 2 billion a day just 2 years ago when everything got boring. After that 2017 peak the 2018 year became very boring and almost always down and there was weeks on end with just 2 billion dollars total, that was a sad period but the cause was about the similar where it didn't moved neither up nor down and just got stuck at around $6k-$8k range without much movement.

Right now bitcoin is stuck even worse, it is between $9.1k to $9.5k and around those levels, sometimes breaks those but with just few hundred at the very best possibility, usually doesn't even break those levels. So, there is lower volume because of lack of movement that is not really that significantly low.

Low volume in commodity and stocks is like of interest and Cryptocurrency or bitcoin is not different on this. Low volume is always sign of downward price movements and we are now moving towards swing time in the year.

Low daily volume means more people are holding than trading it which will make the price to be increased in the long term but in short term it maybe easier to manipulate the prices but when someone starts to liquidate their funds will increase the demand back.

In fact, even at the beginning of 2020, many analysts talked about the shortage of Bitcoin in the market, especially their forecasts were based on the expectations of cryptocurrency users from a halving that took place in May 2020. Thus, a decrease in the volume of Bitcoin trading is possibly the result of a shortage in the market and as a result of this, one can really expect an increase in Bitcoin prices, the main thing is that demand be stable.

When 2020 began, no one expected that there will be a pandemic called covid 19 so they predicted bitcoin price on normal scenario but now we are in extremely depressed economy still bitcoin managed to hold its position which is really a great thing right?

If demand gets stable then the price will also become stable so we set that $10,000 is going to be the price range of bitcoin forever?

This is natural and nothing to worry about, it is impossible for markets to trend all the time, in fact it is known that trending periods are in fact shorter than ranging periods, which is what we are facing right now, the market has entered a ranging phase which is why it seems unable to escape the narrow range in which it is now, but sooner or later this will change and the price will trend once again in ether direction, so there is no point in worrying about this, just watch the markets and wait until the fireworks begin again.

Volume and volatility peak at turning points I think is a paraphrase of George Soros.   The low volume right now gives us no great certainty in current action, if we had high volume we could speculate if a top was forming or possibly a base to rise from but my take is this range ends in a sell after speculation because invariably there are always some expecting price to resolve upwards who get flushed out.   If we had a large amount of shorts I guess the opposite could be said to be true but so far as I know thats not the case.

The volume really matters in trading but I don't think we need to worry about it because, in the first place we can't expect that Bitcoin's volume will keep that range, of course, it will change from time to time as the market demand had changed also. Well, it is pretty obvious how it changed the price and that particularly we can a declining price for this. But it doesn't mean we keep that falling sentiment, it will bounce back as well if there is a huge buying and selling activity happen in the market.

Usually, I follow some topics in Speculation just for fun to see how fast the situation at the start of the topic has changed, most of the time totally the opposite of what the author has predicted.
But this time, it's different. Now, assuming we believe the crap Coinmarketcap is feeding us, especially since coingecko tells the same story, this is the volume:

https://i.imgur.com/YQNNUEh.png

Flat! Flat! 14 days in which it has moved at maxim 20%, and 20% down.
Both sites show ~4 billion lost, from 19 to 15 and 23 to 19.

I have a feeling everybody is waiting to see what will happen with the global economy, will it recover or are we facing another major virus spread and go back in our houses and watch it crumble worse than it has before. But knowing BTC, I have a feeling that just a few moments after I said everyone is waiting suddenly we will see a jump in trades and price.

Exactly. BTC is following the stock market pretty closely and I think it's obvious why. The markets are primed for a massive dump if lockdowns are put back in place. Governments are strongly opposed to that but the trend of hospitalizations will be the deciding factor, and the situation is pessimistic in several large states like California and Texas.


That's usually how it goes. The range gets really tight and boring, everybody waits for the market to decide direction, traders set their stops on both sides of the range......then boom.

little volume because some traders have left the market after Bitcoin halving, there is no fomo anymore for now, the accumulated zone will be in the range of $ 7000- $ 9000 in my opinion

it is all Flat. there is no "down" anywhere to be seen. the volume on average has been the exact same thing for the past 9 months because price has been in the same exact channel for the past 9 months.
with that in mind, each time there is a bigger swing than normal this volume also shoots up for example the rise in October, drop in November, another rise in February, another drop in March and finally the rise in end of April and beginning of May.
interestingly enough it is the same exact "Flat" pattern as December 2018 till April 2019 (price was stable then too).

it has nothing to do with COVID, stock market, ... and is all about simply price being stable and less day trades taking place. keep in mind that sites like coinmarketcap are not reliable not just because of fake volume but because they are reporting altcoin volume too (eg. BTC/someAlt vol) as total bitcoin volume, so when there is some shitcoin pump obviously that volume grows.

id be more believe if you say they leave because of the corona virus but leaving because halving was over ? sounds akward to me . people are excited to see what halving brings on the price and thats the reason why people enter  . that causes fomo  .  the accumulated zone you list were fine , 7k usd is consider low and good buy point because price probably will return easily but 9k as buy point is still high knowing the increase wont likely exceed over 10k these times

https://i.imgur.com/Vz6t7Uv.png

Speaking of the volume, here is the chart especially the volume around 2017 - 2018 which we saw the all-time-high of Bitcoin way back there.
But if you see the volume last year (2019) at the time we reach almost $14,000 and after weeks, it dumps, the volume there is also high.
But for this year's volume, it's extremely low.

Even without this pandemic, we still experience these kind of situation in trading volume on Bitcoin, for me, it's still natural, even there is no pandemic.

Well, both of them probably played a role in this and I can't just discredit one or the other. Obviously the volume drop because of corona is a thing, there were tons of people that left because of the virus and the crisis it caused, however that was just one thing and I do not believe that it would be the whole 100% of the reason, maybe most of it but not all of it. You want to know why?

Because, crisis happened during middle of march and the volume didn't dropped until late(ish) may and that means volume started to go down after the halving. Not right after it, not like middle of may when it was right after the halving, it took about 15 days before it went down so I think that is an important part to keep in mind, but that doesn't change the fact that both of them had a finger on this.

It seems to me that the situation in the coming days will change dramatically, as many investors today will not lose sight of the cryptocurrency market, since for several days the stock market has been closing with a significant drop. Oil is falling in price, and the fear that this decline will continue due to an increase in the supply of raw materials in the market only increases interest in bitcoin. Perhaps that is why bitcoin has been showing green color for several days.

Man I dont know Tesla share is at $1390. I dont see any stock market price drop. S&P500 is not even 10% under its ATH in February. I still see whole stock market in a huge baloon. For oil there is no reason to be high. Economy will contract at least till next year. What I do see is increased price of Gold. Gold for the first time went over $1800.