The Highest Weekend Volume in 7 Months
Volume is such an important part of Cryptocurrency. Volume is one of the tools traders and investors look to for not only confluence but also for overall interest. Based on Volume alone, a trader can decide whether to look at a coin or not.
Volume and liquidity are not one in the same but they are closely linked. Generally speaking, a coin with good volume likely also has good liquidity but that is not always the case.
In the above picture, we can see yesterdays Volume was not only the highest it has been in a long time, it was the highest Weekend (Saturday/Sunday) volume since May 23rd, 2021. May 23rd still holds the record for the year of 2021.
The Volume yesterday was about 38,400 Bitcoin in a 24-Hr period and just on Coinbase alone. Even if we call the average price around $47K that comes to $1.8B. The average volume was 16K Bitcoin per day.
What is the Significance of $2B Volume?
The main take away here is that traders and investors alike had no problem buying when the opportunity to grab Bitcoin at a discount presented itself. There was also a great deal of selling as Sellers unloaded their bags in an effort to drive the price down and eliminate any standing Buy pressure.
The Bears ultimately won the day but they were unable to close anywhere close to their Low. This can be analyzed a few different ways. For starters, the Bears are clearly in control of this local trend. Next, the Bears were able to break all local Support areas but they were unable to break the local trend as they did not trade lower than the previous low.
The Bulls on the other hand were able to produce a good Buyback wick but so far today they are only licking their wounds.
What will be very interesting will be when the CME Futures opens and how those Futures Traders react to such a Gap.
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