What does it mean when a daily volume is significantly low?

Yamifoud

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Quote from: Andrew Lin on June 06, 2020, 07:28:54 PM

If you look at the chart of Bitcoin. The volume of the latest day is lower than all the days post the march crash. Can someone experienced explain what this would imply? My thinking is that being not interested shows weakness. I am on team bear for now.

Thanks in advance!

You might be thinking that if this will continue to drop and stay at low Bitcoin will collapse. Don't get that bad mate, may we we find it low than of yesterday or in the past days, months because the demand will significantly change as well. Bitcoin won't easily give up that is why people had loved it too much than altcoins.

You are really at a BEAR team just because you always think negatively in every drop you have see. tried to look in the past performance and chart, you may also that there is time to see its volume at worst (last year). Being doubtful will lead you into negativity and could make you weak but if you believe and trusted Bitcoin, you will always be optimistic.

BitcoinTurk

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It is a bad sign that the transaction volume decreases day by day. There is no single reason for this decrease in transaction volume. To mention about the main reasons, I can count the following respectively. The first reason is that as you can imagine, people turn their assets into cash. Another reason is long-term investors. Since these people make one-time purchases and do not trade for a long time, the transaction volume decreases from time to time. As investors like these make purchases at once, we can see that the transaction volume has increased intensely in some days and then gradually decreased. As I mentioned, the decrease in transaction volume does not have a single cause and a single negative effect.

Stedsm

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Lolz what's a team bear BTW?
Anyways, you're worried about BTC's volume, right? So if you see it somewhat less compared to the past few days, doesn't literally mean that the so-called "interest" of people has suddenly gone out of BTC, else you may also see a flash-crash that would become impossible to recover its higher price. Volumes do get exhausted when traders are not in a mood to trade and remove their limits/stops, at least that's the case with BTC.

lillobo

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The crypto market volume as the number of shares or contracts traded in a security or an entire market during a given period of time. Simply put volume is the number of shares traded that day. As a result, the higher the volume on a stock the more it will move. An idea can be put forward is that more people believe that company is good, might be going through bad phase but still people are trading it.

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Quote from: Andrew Lin on June 06, 2020, 07:28:54 PM

If you look at the chart of Bitcoin. The volume of the latest day is lower than all the days post the march crash. Can someone experienced explain what this would imply? My thinking is that being not interested shows weakness. I am on team bear for now.

Thanks in advance!

The volume is one of the most important parameters that a trader should always watch, however depending on how the price is moving the volume could be interpreted in different ways, if the price was rising very rapidly but the volume was going down this could be an indication that a reversal is coming soon and it could be a good moment to close your trades, however even if the volume of bitcoin has been going down a little bit since the price is not showing any big movements this is seems to me a sign of indecisiveness more than anything.

crwth

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Different exchanges give different daily volume, can you provide the specific that you are talking about? It's better to analyze it in a more precise way,. Still, in general, if the daily volume is less compared to other days, maybe there are few trading people made on that particular day, but it does not indicate weakness already. There might be a big move that you might expect, as long as the balance traded is significant, it could affect the total volume in a day.

Maybe this could help you as well. https://www.investopedia.com/articles/technical/02/010702.asp

cosmofly

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Quote from: Andrew Lin on June 06, 2020, 07:28:54 PM

If you look at the chart of Bitcoin. The volume of the latest day is lower than all the days post the march crash. Can someone experienced explain what this would imply? My thinking is that being not interested shows weakness. I am on team bear for now.

Thanks in advance!

it was the time that stabilized again. After any storm, there will be peace again. so is the financial market. After strong pump and dump, traders need time to determine the market situation. then they decide whether to sell or continue buying. If the market is always volatile, it looks like a joke.
But one thing I realize is that the lower the volume of the market, the bigger the volatility will be in the coming days. Especially the volume of 200m $ - 350m $ per day, it will be a sign of a strong pump or dump in the future.

dragon695

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Quote from: exstasie on June 07, 2020, 06:24:53 PM

Quote from: Andrew Lin on June 06, 2020, 07:28:54 PM

If you look at the chart of Bitcoin. The volume of the latest day is lower than all the days post the march crash. Can someone experienced explain what this would imply? My thinking is that being not interested shows weakness. I am on team bear for now.

Thanks in advance!

Low volume sideways ranging (like a triangle) = calm before the storm. Breaking outside of the range generally means big volume and the formation of a new trend.

Low volume wedges and flags are usually counter-trend. A low volume upwards flag is usually a "bear flag" and a low volume downward flag is usually a "bull flag" but there are plenty of exceptions to the rule. Chart patterns only play out maybe 50-70% of the time as expected. It's a numbers game.

The current situation is tricky. Bulls broke upwards but immediately failed on strong volume. More often than not, this would be followed by a cascading downtrend. And yet selling immediately dried up, the range continues to hold, higher lows:

As such I am still pretty neutral. Shorts are low and people seem bullish (as a contrarian this makes me bearish) but the fact is there is zero bearish momentum here. Price keeps floating back up. Until the June 2nd low is breached at a minimum, bears just don't look very strong. It's dangerous to be short right now.

Amazing analysis! Hey traders, look at this and think how knowledge, skills, techniques can help you in trading! By having enough knowledge, experiences and some analyzing skills, chart-analysis technique, you can gather enough information to make a decision! I'm impressed by the way this person analyze the chart and the current situation! It's seem like there's a lot of thing I need to improve lol!

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Quote from: Findingnemo on June 07, 2020, 07:28:06 PM

Quote from: Andrew Lin on June 06, 2020, 07:28:54 PM

If you look at the chart of Bitcoin. The volume of the latest day is lower than all the days post the march crash. Can someone experienced explain what this would imply? My thinking is that being not interested shows weakness. I am on team bear for now.

Thanks in advance!

Why you think that less trading volume on daily basis means people are not interested on buying them? You can also relate that people are not interested in selling their bitcoin because they might think that price of bitcoin is going to be bullish in the near future.Most of the time volumes on exchanges are manipulated so don't take it as an indicator while making your analysis.

True! Trading volume is effective when you look at it from the beginning to now. High trading volume at a moment of time indicates that there's a time people are interested in the potential of that coin. However, low trading volume doesn't necessarily indicates the opposite!

Findingnemo

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Quote from: Andrew Lin on June 06, 2020, 07:28:54 PM

If you look at the chart of Bitcoin. The volume of the latest day is lower than all the days post the march crash. Can someone experienced explain what this would imply? My thinking is that being not interested shows weakness. I am on team bear for now.

Thanks in advance!

Why you think that less trading volume on daily basis means people are not interested on buying them? You can also relate that people are not interested in selling their bitcoin because they might think that price of bitcoin is going to be bullish in the near future.Most of the time volumes on exchanges are manipulated so don't take it as an indicator while making your analysis.

exstasie

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Quote from: Andrew Lin on June 06, 2020, 07:28:54 PM

If you look at the chart of Bitcoin. The volume of the latest day is lower than all the days post the march crash. Can someone experienced explain what this would imply? My thinking is that being not interested shows weakness. I am on team bear for now.

Thanks in advance!

Low volume sideways ranging (like a triangle) = calm before the storm. Breaking outside of the range generally means big volume and the formation of a new trend.

Low volume wedges and flags are usually counter-trend. A low volume upwards flag is usually a "bear flag" and a low volume downward flag is usually a "bull flag" but there are plenty of exceptions to the rule. Chart patterns only play out maybe 50-70% of the time as expected. It's a numbers game.

The current situation is tricky. Bulls broke upwards but immediately failed on strong volume. More often than not, this would be followed by a cascading downtrend. And yet selling immediately dried up, the range continues to hold, higher lows:

As such I am still pretty neutral. Shorts are low and people seem bullish (as a contrarian this makes me bearish) but the fact is there is zero bearish momentum here. Price keeps floating back up. Until the June 2nd low is breached at a minimum, bears just don't look very strong. It's dangerous to be short right now.

kapalmabur

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Quote from: Andrew Lin on June 06, 2020, 07:28:54 PM

If you look at the chart of Bitcoin. The volume of the latest day is lower than all the days post the march crash. Can someone experienced explain what this would imply? My thinking is that being not interested shows weakness. I am on team bear for now.

Thanks in advance!

Bitcoin prices must hold above $ 9300, and Bullish will be able to survive,
if not then bearish will dominate, I hope Bitcoin can survive at this level

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Quote from: Dart18 on June 07, 2020, 05:51:30 AM

Perhaps they are using different coins.
While bitcoin is not moving much, there is no profit in it.

Definitely this is due to most people are just holding bitcoin and not trading it, I myself just keep my btc off the market and holding it. You get no profit when you try to trade it casually, but you can have the chance to if you consider the futures trading with leverage adjustments.

Quote from: Dart18 on June 07, 2020, 05:51:30 AM

There are traders out there that does trade in a daily basis for daily profit.
If bitcoin won't move then they will switch to another to make some money. You should also consider that idea.

Most of the btc trader are just waiting for some exchanging hands, you'll them in the middle of large transactions getting a profit after a huge buy. On top of these things is the speculation from both sides,
this is maybe why the price keeps moving from a short range of price.

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It's been the problem for me for ages now especially in this range from 9k to 10k, saying it for a long time: no volume! It doesn't take much to budge the price, low volume simply means, there aren't actually people really causing Bitcoin to be changing hands right now.

A lot of the trade volume is on derivatives: people selling and buying on Bitcoin prices, but not actually changine BTC. To me, that means fewer people buying to keep, and people selling only to buy dips. Thus impossible to really push price far down either side.

P.S. I'm on neither side right now, but would be okay with longer bearish terms.

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Trading volume indicates the number of trades into the platform if there are a lot of trades there is a higher chance that the market is volatile and if there is no too much trade the market is quite stable. It is the time when the trading is riskier because it looks too quiet because there is a chance that the market price goes up or bring down. In trading, I used these trading indicators, bollinger bands, because it indicates the upper and lower band if there is a lot of changes in the market which is good because you know when is the right time to make trade still it is risky the trades depend on your knowledge and skills.

Jating

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Quote from: Andrew Lin on June 06, 2020, 07:28:54 PM

If you look at the chart of Bitcoin. The volume of the latest day is lower than all the days post the march crash. Can someone experienced explain what this would imply? My thinking is that being not interested shows weakness. I am on team bear for now.

Thanks in advance!

Obviously, you are right, if there no volumes or lack there-of, simply means demand are low. But I don't understand that just because of lower volumes, you will suddenly goes full bear now? It not that trading volume is a bad indicator.

But I do hope that you know that market is very volatile, maybe this weekend there's not much volume but it doesn't mean that the bulls will not buy in the next 24 hours. You shouldn't rely on this indicators alone, so should also look at the current market sentiments and any positive news that will push the volume to grow.

sheenshane

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This means that there is more selling interest and probably also a low liquid that makes the lower volatility. That is right, the volume is determined by the demand and for sure holders again probably at the selling point that makes a reaction of the market and began to drop the price.

That was supposedly my thought on this topic but I've found that you simply copy-pasting on Reddit post on this topic. What does it mean when a daily volume is significantly low?

That is completely plagiarism.

Archieved

Edited: Anyway, I just noticed they are the same name.

Nhor1011

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Quote from: Andrew Lin on June 06, 2020, 07:28:54 PM

If you look at the chart of Bitcoin. The volume of the latest day is lower than all the days post the march crash. Can someone experienced explain what this would imply? My thinking is that being not interested shows weakness. I am on team bear for now.

Thanks in advance!

Volume is determined by demand. It means when the volume of that day is lower than the other day,the demand to buy is less compared to other day. this is the right time to take advantage of buying while the price is low if you have some capital to invest.

Dart18

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Perhaps they are using different coins.
While bitcoin is not moving much, there is no profit in it.

There are traders out there that does trade in a daily basis for daily profit.
If bitcoin won't move then they will switch to another to make some money. You should also consider that idea.

The Cryptovator

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Volume means that amount has been traded. If your question about specific exchange then you will notice it somewhere on trading page. If its showing 24 hours volume means that means that amount has been traded that exchange. Most likely CMC collect data from all exchange to calculate total volume. Increase and decrease volume technically doesn't mean it will impact on the price. If volume is low you can say buyers are waiting to accumulate with lower price and sellers are waiting for sell with higher prices. That's why total trading volume become lower. But we assume when volume increase significantly then there is chance bump price, mostly time it happening for alt coins.

joniboini

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The current trend is unclear for most traders. It might go up or break down, which is why most of them wait and don't do any trade. So it means most trades are currently a buy/sell from someone who needs instant liquidity, while the rest are waiting to find an opportunity.

I'm not worried when it comes to Bitcoin volumes, but there's a different story when it comes to alts.

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Quote from: Andrew Lin on June 06, 2020, 07:28:54 PM

If you look at the chart of Bitcoin. The volume of the latest day is lower than all the days post the march crash. Can someone experienced explain what this would imply? My thinking is that being not interested shows weakness. I am on team bear for now.

Thanks in advance!

Trading volume usually is a indicator, higher price and low volume could indicate that the bears has a strong case and could drag the market price down. However, there are factors that you need to look as well, like the liquidity of that exchanges and we all know that volumes can be fake, or similarly, they can pull what we call "spoof trading". So just be careful when you are trading, don't just look at volume as key indicators in making your decision to go long or short.

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Quote from: Andrew Lin on June 06, 2020, 07:28:54 PM

My thinking is that being not interested shows weakness. I am on team bear for now.

Weakness is different from lack of demand for that particular day. Traders do rest sometime or "waiting before making any unnecessary trades"

Quote from: Oilacris on June 06, 2020, 07:46:08 PM

For now the market tend to be relaxed and this is the hard part since we dont know if on where it would be heading on next minute,hours,days or weeks.

Less volatility could help also somehow retain a good position for traders.

_{OP you can also refer to the BTC and ALTCOIN dominance if its coincides with the marketcap and simply deduced some possible movement there.}(Not major impact but given us idea similarly like using indicators)

Oilacris

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Quote from: Andrew Lin on June 06, 2020, 07:28:54 PM

If you look at the chart of Bitcoin. The volume of the latest day is lower than all the days post the march crash. Can someone experienced explain what this would imply? My thinking is that being not interested shows weakness. I am on team bear for now.

Thanks in advance!

Showing less volume on a particular day or timeframe isnt necessarily mean that it do talks about no or less interest. There were indeed days to be like
this where the market is moving sideways or on very minimal aspect.In talks about latest day of that march crash then you can really expect to have that
daily volume yet it do compose of panic sellers and accumulators on that period.Same goes when price is peaking up or reaching/breaking resistances.
For now the market tend to be relaxed and this is the hard part since we dont know if on where it would be heading on next minute,hours,days or weeks.

Andrew Lin

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If you look at the chart of Bitcoin. The volume of the latest day is lower than all the days post the march crash. Can someone experienced explain what this would imply? My thinking is that being not interested shows weakness. I am on team bear for now.

Thanks in advance!

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