$BCH spot price: 301.3 USDT, up 6.73% over the rolling 24 hours. This figure compares only the starting and ending prices. During that period, the price reached a high of 302 USDT and a low of 279.7 USDT, so the fluctuations in between were much larger than the 6.73% change suggests.
Here’s an easy-to-miss point. Comparing two consecutive, complete 1-hour windows, the price of $BCH rose from 297.6 to 301.5 USDT, a gain of 1.31%. But trading volume fell from about 754,000 USDT to about 471,000 USDT, a change of -37.58%. The price rose while trading activity declined. Both can happen at the same time, but lower trading volume should not be interpreted as an outflow of funds.
Trading volume only describes how active trading is. A price rise does not necessarily mean buyers are in control, much less that there is a net inflow of funds. When looking at price changes, consider the period’s highs and lows alongside short-term changes in trading volume. This gives a more accurate picture of what actually happened than looking at a single percentage.
Here’s an easy-to-miss point. Comparing two consecutive, complete 1-hour windows, the price of $BCH rose from 297.6 to 301.5 USDT, a gain of 1.31%. But trading volume fell from about 754,000 USDT to about 471,000 USDT, a change of -37.58%. The price rose while trading activity declined. Both can happen at the same time, but lower trading volume should not be interpreted as an outflow of funds.
Trading volume only describes how active trading is. A price rise does not necessarily mean buyers are in control, much less that there is a net inflow of funds. When looking at price changes, consider the period’s highs and lows alongside short-term changes in trading volume. This gives a more accurate picture of what actually happened than looking at a single percentage.