BTC still has not hit ideal "Reversal Volume"

The prices of bitcoin and alts looks to be trending better this last week. However, the largest concern I still see before feeling more "bullish" is volume.

The following chart represents the logarithmic bullish trend of Bitcoin since its inception. As one can see from this chart, for the past few years, volume has been a key indicator that a reversal has occurred within the ascending logarithmic trend.

  • In 2017 volume began to increase culminating in the reversal volume in 2018
  • Then in late 2018, volume seemed to indicate a low had finally occurred until the price hit similar strong volume in May of 2019
  • When the Covid-19 drop hit in 2020, it was then accompanied by the highest monthly volume yet, which then ricocheted the price upward
  • Then finally, volume seemed to indicate a likely reversal approaching in early 2021


Now I should note that the latest "high" from volume did not necessarily indicate the all-time high nor did monthly volume represent the bounces that occurred during June/November 2021.

Additionally, monthly volume does not necessarily indicate a guaranteed "high/low" has been met (neither does weekly volume for that matter), as the highs/lows associated with volume are usually within a couple of candles of the reversal.

However, I do believe that if "reversal volume" were to occur, it would at least indicate a safer entry for anyone looking for a true break from the bearish market that exists today. Hence, although one should not necessarily expect volume as a requirement for a short-term reversal, it at least helps as an indicator for a more likely long-term reversal.

And as always, this is solely my opinion and not meant in any way as financial advice. But please like or comment if you agree or have any additional opinions.

Bitcoin (Cryptocurrency)BTCBTCUSDlongtermParallel ChannelTrend AnalysisvolumeanalysisvolumeindicatorvolumepriceanalysisVolume

免责声明