Volume is one of the most important analysis objects in technical analysis after price data. In order to facilitate interpretation, a large number of indicators have been developed over the years to evaluate the volume. Over the past 18 months, the cryptocurrency market has grown at an unprecedented rate.
The full list of digital asset exchanges with a leverage trading here. Cryptocurrency traders analyze volume within cryptocurrency markets to gain an understanding of the strength of a market trend. High volume cryptocurrency is a type of digital asset that has a high market capitalization https://www.mushroom.community/ and daily trading volume. These types of cryptocurrencies are typically the most liquid and have the highest market value. The cryptocurrency market is one of the most active and volatile markets in the world. 24 hour trading volume for crypto assets is often in the billions of dollars.
For instance, volume bars on the 12-hour ETH chart represent the amount of ETH that changed hands during that time period. The volume bar on a 20-minute ETH chart, on the other hand, shows the quantity of ETH traded within that time period. With that said, before deciding to invest in crypto, it’s crucial to consider a cryptocurrency’s overall trading volume, not just the volume shown on a specific exchange. Demand is another factor that is in direct correlation with volume, and it’s probably the most important one. Simply put, high trading volume means that there is a huge number of traders on the market actively buying and selling this token. What this means is that there is a demand for this token, which is always good news as more people are on the market, which means a more stable market with good trading opportunities.
Binance also controlled the vast majority of bitcoin (BTC-USD) trading volume last year, CoinDesk noted, citing an Arcane Research report, ending 2022 at 92% vs. 45% to start the year. Bitcoin – the world’s first cryptocurrency – was introduced in 2009 and since then over 1000 tradable tokens have come into existence. However, for a long time India missed out on the tremendous opportunity that the rest of the world had been enjoying. The money managers who avoided the many ups and downs of crypto may be feeling relieved for having done so, according Jared Gross, head of institutional portfolio strategy at JPMorgan Asset Management. “As an asset class, crypto is effectively nonexistent for most large institutional investors,” he said on a recent episode of the “What Goes Up” podcast.
Liquidity is a major contributing factor to volume because of the way it affects prices – and this is more evident on smaller coins. If more people are trading their USDT for BTC, this means there is a liquid inflow into Bitcoin and the price action is bullish. The Bitcoin volume measurement will increase, and with the spike in volume, Bitcoin will rise in price. We assume no liability for the completeness or accuracy of the information.
With a market cap of nearly 1 trillion US dollars, Bitcoin holds a market dominance of over 40%. It’s followed by Ether, which benefits from a 20% dominance, and other coins such as Solana and XRP. Invented in 2009 by pseudonymous developer https://www.mushroom.community/crypto-currency-investing-for-beginners/ Satoshi Nakamoto, decentralized cryptocurrencies are not the newest of technologies. However, over the past 10 years, digital currencies have gained so much traction that they have triggered a genuine modern-day gold rush.
“Volume” is a term used in the world of cryptocurrency to refer to how much money has been invested into that particular coin or token. For example, if I had 100 BTC and not sold any at all during the year, my total volume would be 0. However, if I bought 10 more Bitcoins on December 4th 2018 for $10 each (~$1k), then my total investment would be 1. China stock market regulators implemented market-wide circuit breakers when the market crash was imminent on the 4th of January 2016. This paper examines whether traders’ herding behaviour led to the circuit breaker trigger and limited success in moderating market reaction.
High volume does often indicate higher interest in a coin and its potential increase in value, but it can also mark the beginning of a bear market. But in a situation where you already own the asset, it is better to sell your share and maximize your profit before the market goes south. The current measurement on the indicator is 48, which indicates Bitcoin is neither overbought nor oversold and could go in either direction. The most likely direction for Bitcoin will be the direction of the financial market at large. The MFI indicator is used in reversal trading to identify support and resistance levels.