Volume is at its highest in a month—who's selling?
Yesterday morning, I wrote here that the ones hammering BTC were its own ETF buyers, not U.S. tech stocks. The condition I set was that DOGE's 24-hour trading volume would top 50 million dollars while its price continued to fall.
This morning, I checked: 38.9 million dollars. It didn't make it.
But I missed something. Using the same measure yesterday morning, BTC's 24-hour trading volume was 1105.8 million dollars, just 0.96 times its 30-day average. I said that meant buyers were pulling back, not sellers piling in. This morning, the figure was 2055 million dollars, or 1.76 times the average—the heaviest in a month.
A decline on low volume and a decline on high volume are often just the first and second stages of the same thing. First, no one steps in to buy, so the price moves lower to find buyers. Then, at some point, holders start giving up. I got the first stage right and thought that was the whole story. I've stayed on the sidelines these past few days because I couldn't tell the two stages apart.
Three names on the same screen; the only difference is volume. UNI is down 5.2%, with trading volume at 48.9 million dollars, or 1.15 times its 30-day average—the biggest drop, with volume least in line with the move. DOGE is down nearly 3%, with volume right at its average. XRP is down less than 3%, with volume at 1.27 times its average. All three are falling, and all have volume close to their averages.
For today's Asian session, I'm watching just one number: can BTC's hourly trading volume stay above 100 million dollars for two consecutive hours? If it can't, that means the holders who gave up last night have finished selling.
When you open the market screen, what do you look at first: price or trading volume?
$UNI $DOGE $XRP #BinanceSquare #Uniswap #BitcoinETFOutflowsHit1.6B
Crypto assets are high-risk. The above is my personal observation and does not constitute investment advice. Please make your own judgment (DYOR).