Why is Bitcoin volume so low? What effect on price?

[DrBitcoin]

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?

[jackg]

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...

[exstasie]

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.

[logfiles]

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)

[Cherylstar86]

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?

There might be a low volume of trades right now but every time bitcoin dumps, that’s the volume started to show and that’s why the price is still up because of a great support level. We are moving a sideways trend so technically, there’s no huge volume to be seen. If bitcoin spikes again the volume will start to show, just buy while the volume is still low because we are still waiting for bull to come again.

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.

[STT]

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.



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

[minairia3]

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?

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.

[stompix]

Bitcoin volume is extremely low right now.

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:





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...
How the hell would you lose 98,2 % of the volume in a month?

[el kaka22]

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.

[logfiles]

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...
How the hell would you lose 98,2 % of the volume in a month?

Almost forgot about the recent changes in coinmarketcap.  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.

[mindrust]

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.

[Awraawra]

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.

[pooya87]

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.

[Febo]

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?

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.

[Raflesia]

Bitcoin volume is extremely low right now.

-snip-

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.


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.

[StonksStonksStonks]

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.

[virasog]

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?

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.

[TheGreatPython]

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.

[okala]

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.

[Findingnemo]

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?

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.