Bitcoin’s Volume Explosion: Your Guide to Catching the Most Profitable Trades
Volume spikes don't lie—they scream opportunity. When Bitcoin's trading activity surges, it's not just noise; it's the market shouting where the money's moving next.
Spotting the Signals
Forget crystal balls. Volume surges create patterns that seasoned traders recognize instantly. These aren't subtle hints—they're flashing neon signs pointing toward momentum shifts.
Timing the Tides
Profit doesn't favor those who wait. It rewards those who recognize volume anomalies and act before the crowd catches on. The best trades often happen in the first minutes of a volume explosion.
Beyond the Hype
Sure, traditional finance still thinks crypto's a casino—but while they're debating yield curves, smart traders are banking real returns during these volume spikes. Sometimes the 'irrational' market makes more sense than the 'rational' one.
According to the behavior analysis platform Santiment, Bitcoin
$113,455 has experienced its largest two-week trading volume surge since the beginning of the year, marking both market lows and highs. In a graph shared from the company’s social media account, the $84.08 billion volume accumulation seen during the tariff-induced retreat in April signaled a low. Meanwhile, the recent more substantial surge of $90.90 billion coincided with a peak signal matching that of a new all-time high above $124,000. These extreme levels in trading volume have emerged as profitable reference points for contrarian strategies.
Swinging Volumes Indicate Peaks and Troughs
Data shared by Santiment indicates the first major surge in Bitcoin accompanied steep sales, offering relatively appealing entry opportunities for investors. The second, stronger wave appeared when the price hit record highs, supporting the seller’s side due to the intense profit-taking at that time. The company commented, “Bitcoin’s biggest two volume surges indicated the most opportune moments for buying amid price dips and for selling at price peaks.”
On the market psychology side, the outlook remains pessimistic. Santiment’s sentiment metrics reveal a turn to the most negative level of crowd sentiment seen on social media platforms since June. This backdrop, combined with the post-record profit sales, has led to cautious short-term pricing becoming more prominent.
Glassnode: On-Chain Data Signals Taking Profits
Just days before Santiment’s sharing, Glassnode reported that Initial Buyers acquired 50,000 BTC within five days, while Loyal Buyers exercised more cautious accumulation. Conversely, the proportion of “Loss Sellers” rose by approximately 38%. Wallets taking profits reached year-high levels. On August 20, long-term investors registered a profit of $2.8 billion in Bitcoin, ethereum (ETH)
$4,286, XRP, and Solana
$184 (SOL).
Bitcoin was at the core of this wave. The most significant profit-taking since December 2024 was recorded. On July 18, investors pocketed $1.5 billion. According to CryptoAppsy, despite the market news preparation, the largest cryptocurrency was trading at $113,705, with a weekly loss of around 7% and a monthly loss of 3.1%. However, the annual growth remains approximately 90%.
You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.