BTC trading volume has experienced explosive growth, reaching a high not seen since May 2021, with a trading volume of 154.92 billion BTC on November 12. According to Santiment data, although BTC price is still under pressure, its overall trading volume has significantly increased by 32% over the past week.
Changes in trading volume
The current peak trading volume of Bitcoin is close to the level seen in May 2021, which is worth exploring in depth. Despite the price being in a downward trend, weekly sales still achieved a growth rate of 32%, which has attracted widespread attention in the cryptocurrency market. Frequent trading activity of numerous altcoins indicates a profit rotation phenomenon in the market, meaning traders are reallocating the profits gained from Bitcoin into various speculative assets.
Volume-price relationship and market volatility
A sharp surge in trading activity during price declines often signals significant market volatility. Generally speaking, high trading volume indicates strong market participation, but the outflow of funds to altcoins at this time shows that traders are not completely exiting the market but are choosing to diversify their positions to reduce the risk of a single asset and seek more profit opportunities.
BTC price trend prediction
Yesterday, the price of Bitcoin successfully closed above the key support level of $91,000. Along with the downward price trend, many analysts have set key price points, hoping for a bullish reversal once the price reaches the support level. The market currently believes that the range of $90,000 to $92,000 is the key area for BTC price reversal. If the closing price on the daily chart can smoothly break through this range, a reversal is expected. Once the price stabilizes above this level, it is highly likely that Bitcoin will once again attempt to rise towards $100,000.
The information provided in this article is for reference only and does not constitute any type of advice.