How is it possible that Bitcoin's POC of the last few years is at 10600 price?

[HandcraftedBreads]

Image: https://ibb.co/99zVQpR


If the Point Of Control (POC) is the price level where the most trading has occurred

how is it possible that the chart indicates this level to be at 10k range, when BTC was in 2019-2020?

Isn't trading volume much higher in 2021, for example in the 30-40k price range?

[adaseb]

Because when the price is lower there is more bitcoins traded and I think this is how it counts the volume. Also you need to realize that the longer prices stays in a certain area that more trades will take place at those prices and hence the POC will be higher in areas where Bitcoin traded sideways.

I wouldn’t use this to gauge any trades however because most they bought at $10K already sold. These are good to find support and resistance areas in the hourly or daily timeframes.

[Yamane_Keto]

There were institutional investors who bought Bitcoin periodically during that period, until there was no additional Bitcoin from the miners. During that period, Grayscale bought thousands of Bitcoins daily, reaching about half a million Bitcoins in a short period, so most of the purchases were concentrated around $10,000, and they stopped.
You can follow the changes about them in this thread
https://bitcointalk.org/index.php?topic=5256529.0
If we remove the influence of institutional investors during that period, we will find that there is no significant difference, and perhaps currently due to interest rates, trading volumes are still small.

[Tytanowy Janusz]

or maybe it's because you're using volume from an exchange whose popularity is declining? here is the chart from binance:



which is also not 100% accurate, because binance had zero fees just at the bottom of the current bear market

how is it possible that the chart indicates this level to be at 10k range, when BTC was in 2019-2020?

the chart you show us is a logarithmic chart and the big bars at the bottom are responsible for the volume from 3k to 14k (dump by 70% and pump by 400%), while the current bars are responsible for the price movement from 22k to 24k (pump 10%).

What I mean is that if you look at Bitcoin from the perspective of $200,000 at the current price action (pump to 60k, dump to 30k, pump to 60k and dump to 17k and pump to 30k) you will put it in 2 candles (just like from the current level you judge the years 2019-2020), you will draw the same wrong conclusions that the current volumes are astronomical and it's right here, where POC is. here, where? at 15k? 30k? or 60k?

[jeraldskie11]

Image: https://ibb.co/99zVQpR


If the Point Of Control (POC) is the price level where the most trading has occurred

how is it possible that the chart indicates this level to be at 10k range, when BTC was in 2019-2020?

Isn't trading volume much higher in 2021, for example in the 30-40k price range?

I agree that the trading volume in the past 2021 is bigger than in 2019/2020. The Volume Profile, on the other hand, is based on trade volume by level. In other words, it is use as dynamic support and resistance. POC refers to the levels that have the highest number of candlesticks that hit and have a high volume within a given date range. It only means that 2021 with huge volumes is not the POC.

[HandcraftedBreads]

the chart you show us is a logarithmic chart and the big bars at the bottom are responsible for the volume from 3k to 14k (dump by 70% and pump by 400%), while the current bars are responsible for the price movement from 22k to 24k (pump 10%).

This may be incorrect. I've verified myself that the scale being logarithmic or regular does not influence the number of bars displayed in the POC indicator, therefore every bar displays the same range of price.

For what regards the possibility that the relative condition of the exchange used for charting may influence the BTC graph, thanks for the tip, very logical and informative. I confirm that the whole issue depends mainly on this.

Sometimes one may miss simple things and needs to be set back in track by others, like you did with me.