Coinbase’s spot trading volumes for bitcoin have surged, reaching all-time highs (ATH) despite the market’s failure to break through its top. This increase in volume is a powerful signal of the market’s underlying strength and can even be more important than the price.
Volume is the total number of contracts or shares that are exchanged in a certain period of time. The growing volume of Bitcoin on Coinbase indicates more interest and activity, which is a crucial indicator of a robust bull market. It not only shows that purchasers are confident in the product, but it also implies that fresh cash is coming into the market, which may cause the price to continue rising.
One cannot stress the basic significance of climbing volume. Because it suggests that major participants, referred to as “whales,” are accumulating assets, it frequently signals the beginning of huge price moves. Strong trading volumes can also result in increased liquidity, which draws institutional investors and keeps the trend going.
Taking a closer look at the detailed price analysis of BTC, we can see that it is now in a strong uptrend on the TradingView chart. Local support has been created at $59,965 and it is in tight alignment with the 50-day moving average. The bullish perspective has been strengthened by this level, which has consistently served as a barrier against any negative attempts.
On the other hand, opposition appears at the psychological $70,000 threshold. If this level is broken with enough volume, Bitcoin’s price discovery may enter previously undiscovered spheres. But there’s always a chance for a price reversal, especially if we observe a drop in volume, which might be a sign of diminishing interest or profit-taking.
