Well that’s a little bit interesting now isn’t it? A $10 billion volume day for Bitcoin. A flash in the pan, perhaps. Almost 2.4 billion for EOS.
Zooming out to the 30-day global chart there’s been a clear uptick in volume.
Zooming out further to the one year chart we can clearly see a recent return of volume over the last few weeks.
The top cryptos are beginning to show a return to impressive volume numbers.
Today’s numbers far exceed this time last year.
What’s it All Mean?
Does this mean we are going to the moon? No.
Could we go lower? Yes.
A lot lower? Yes.
But would we stay there?
At these volumes no. No, we would not. (In my opinion)
As they say – Hope for the best, plan for the worst. I see this turned on its head for the crypto market. Should these elevated volumes continue and the prices tank to new lows (sub $85 billion market cap) I foresee myself going on something of a shopping spree.
First and foremost BTC, with EOS a close second and a smattering of other projects I believe have a very bright future over a multi-year horizon.
So What Am I Doing Right Now?
Nothing new. I continue to dollar cost average into a number of projects. Disposable income only and the same rate as the previous months. The only change is that I now accumulate more Bitcoin every week as against once every two weeks.
The Bear Remains in Charge
I remain on the sidelines in terms of serious investment. The overall risk profile is still negative – any crypto you invest in is more likely to be worth less (but not worthless) next week. Longterm I believe the sky is the limit but in the short term, I respect what the charts are telling me – beware.
Are we forming a bottom in BTC? The weekly chart offers a tantalizing glimpse of that possibility but its very easy to see those lower highs. Remember, it’s largely fruitless to guess the bottom you’ll likely run out of capital before you get it right.
There’s a lot more complexity to the volume metric than I’ve highlighted here.
You can learn a little more about volume in the context of the crypto market here.
The related concept of wash trading was recently looked at by Matt of Trybe.
For quality market updates with a keen awareness of the role of volume checkout Workin2005.
Your Remaining Votes (within 24hrs) : 10 of 10