I keep seeing posts that say things like "we're currently in low volume wait mode... this means the price is about to collapse... blah blah blah" so I feel the need to create a post debunking this incorrect claim.
These people are only looking at the volume in terms of BTC. But the value of BTC has risen tremendously, so that's not a reliable way to measure the total value that is exchanging hands. A more reliable way is to measure the volume in terms of the currency being traded for BTC, since it isn't as volatile.
This is the volume chart when looking at the volume in BTC (the bars are the volume, for those who have never seen a volume chart):
http://i47.tinypic.com/2e1uoec.pngAnd this is the volume chart when looking at the volume in terms of USD:
http://i48.tinypic.com/axocyg.pngThe value of USD hasn't changed much over this period, so it's a more reliable measure of the total value exchanging hands. We're actually seeing the highest trading volume ever. What this means? More people than ever are buying and selling Bitcoin. It is not in "low volume wait mode."
Now if the volume in terms of USD began to plateau or decline, then I would worry.