BITCOIN ANALYSIS: WEEK OF AUG 10 (INTRO TO VOLUME)

Welcome to your Bitcoin analysis for the week of August 10th!This week, we're diving deep into a crucial indicator that every Bitcoin trader should understand: volume. The week of November 2nd Bitcoin Analysis by Tone Vays. Bitcoin Analysis: Week of Nov 2 (Intro to Stochastics) which after a very promising 2 weeks with buying volume not seen since theVolume, simply put, is the fuel that drives price movements.Without it, even the most bullish news or bearish sentiment might fizzle out.We'll be exploring the role of trading volume in market-trends.html">understanding market trends, identifying potential breakouts, and avoiding common pitfalls.Think of it like this: if price is the headline, volume is the story behind it.We’ll be learning how to read between the lines to gain a more comprehensive picture of the Bitcoin market. Pakistan makes waves in the crypto world with its latest initiative to attract miners by introducing crypto-friendly electricity tariffs. This groundbreakingLast week touched upon Bitcoin news categories, but this week focuses on equipping you with a practical skill applicable across all market conditions.We’ll consider everything from where volume data comes from, to how it fits into the overall technical analysis toolkit.We'll also look back briefly at some late July and early August price action to contextualize our volume analysis.

Understanding Bitcoin Trading Volume

What exactly is trading volume, and why is it so important?In essence, trading volume represents the total number of Bitcoin tokens that have been exchanged within a specific timeframe, usually a 24-hour period. Popular tools and platforms for analyzing Bitcoin trading volume include platforms like TradingView and CoinMarketCap. These platforms offer a variety of volume analysis tools and real-time data that traders rely on to make informed decisions. Volume is the fuel that drives the price. Unnamed ExpertThis metric provides valuable insights into the strength and conviction behind price movements.High volume typically indicates strong interest and participation, while low volume may suggest a lack of conviction or uncertainty in the market. Friday Aug 1st started out as an impressive day yet sold off near the end. As a trader of the Fiat Financial Markets it would have been reasonable to pull the trigger and try and take advantage of the upward momentum, but keep in mind, the medium term trend is still down and the trader should have realized within a few days that the breakoutConsider it the pulse of the market, signaling whether a trend is likely to continue or reverse.

Data Sources for Bitcoin Volume

It's important to remember that the volume data displayed on various platforms is often only a fraction of the total Bitcoin trading volume.These figures typically represent the sum of the BTC/USD pair from a selection of major exchanges.The actual total trading volume is significantly higher due to several factors, including:

• OTC (Over-The-Counter) Markets: A substantial portion of Bitcoin trading occurs outside of traditional exchanges in private, negotiated deals. Detailed technical analysis. See trends and overbought / oversold signals in a simple an efficient way. Indicators values for all time-frames offer you an excellent overview of the market.This OTC volume is often not reflected in the publicly available data.
• Geographic Variations: The volume of Bitcoin trading can vary greatly among different exchanges and regions.
• Exchange Coverage: Different platforms aggregate data from different sets of exchanges, leading to discrepancies in reported volume figures.

Popular platforms such as TradingView and CoinMarketCap are invaluable resources for tracking Bitcoin trading volume. Analytical overview on Bitcoin price this week. Ecosystem . English . News Price Analysis . As of Aug. 18, some of the largest Bitcoin prices are in relation to: (in USD) the British poundThey provide real-time data and a variety of volume analysis tools that traders use to make informed decisions.Be mindful of the data sources these platforms rely on and understand their limitations.

Analyzing Volume in Conjunction with Price Action

Volume is most effective when analyzed in conjunction with price action. In July 2025, the Bitcoin 2025 Conference in Nashville, Tennessee formed the basis for snap downside in early August which took BTC/USD down 30% to $49,000 from $70,000.Looking at price charts alone can be misleading; volume provides crucial context and helps confirm or deny potential trading signals. Bitcoin rises above $100,000 for the first time since February 7th. View the price action now.Here's how to interpret volume in different scenarios:

• Price Increase with High Volume: This typically indicates a strong bullish trend.The increased volume suggests that more buyers are entering the market, confirming the upward price movement.
• Price Increase with Low Volume: This may be a sign of a weak rally or a potential ""fakeout."" The lack of volume suggests that the price increase is not supported by strong buying pressure and may be unsustainable.
• Price Decrease with High Volume: This usually indicates a strong bearish trend.The increased volume suggests that more sellers are entering the market, confirming the downward price movement.
• Price Decrease with Low Volume: This may be a sign of a weak downtrend or a period of consolidation. The price of Bitcoin (BTC) at the beginning of this week is $50,278. This represents a significant decrease from last Monday s price of $69,533. The next higher resistance levels are $52,465 and $56,591, while the next lower supports are $47,361 and $39,110.The lack of volume suggests that the price decrease is not supported by strong selling pressure and may be followed by a reversal.

Example: The Case of August 1st

As we noted at the beginning, Friday, August 1st, started out as an impressive day for Bitcoin, with upward momentum suggesting a potential breakout.However, the price sold off near the end of the day.As a trader of traditional fiat financial markets, one might have been tempted to pull the trigger and try to capitalize on the upward momentum.However, the medium-term trend was still down, and a savvy trader should have recognized the importance of volume.If the initial surge on August 1st wasn't supported by significant volume, it would have been a red flag indicating a potential fakeout. In a shocking turn of events, Trump proposes a tariff-free trade pact with Canada that could revolutionize North American trade as we know it! Meanwhile, theThis underscores the importance of considering volume alongside price action when making trading decisions.

Technical Indicators and Volume

Several technical indicators incorporate volume data to provide additional insights into market trends.Here are a few examples:

• On-Balance Volume (OBV): OBV is a momentum indicator that uses volume to predict changes in price. To know more about Bitcoin, read whitepaper or visit Bitcoin.org. Useful Technical indicators to know for analyzing live Bitcoin price: Technical Analysis may help to forecast Bitcoin (BTC) price trends, however, do remember that analysis can't make absolute predictions about the future. Therefore, trade with caution.It assumes that volume precedes price movement.
• Volume-Weighted Average Price (VWAP): VWAP calculates the average price of a security weighted by volume.It is often used by institutional investors to measure the efficiency of their trades.
• Accumulation/Distribution Line (A/D Line): The A/D Line is a volume-based indicator that measures the flow of money into and out of a security. The price of Bitcoin (BTC) is $93,825.31 today as of, EDT, with a 24-hour trading volume of $9.55B. Live Bitcoin price movements from all markets and BTC market cap, use ourIt helps identify accumulation (buying pressure) and distribution (selling pressure).

These indicators can be valuable tools for confirming trends, identifying divergences, and making more informed trading decisions.They supplement raw volume data to provide a more nuanced view of market dynamics.

The Impact of Bitcoin News and Events on Volume

Bitcoins price and trading volume are heavily influenced by news and events, both positive and negative. Leader in cryptocurrency, Bitcoin, Ethereum, XRP, blockchain, DeFi, digital finance and Web 3.0 news with analysis, video and live price updates. BTC $ 104,402.14Regulatory changes, technological advancements, macroeconomic factors, and even social media sentiment can all have a significant impact on market activity.

• Positive News: Positive news, such as regulatory approval or institutional adoption, can lead to increased buying pressure and higher trading volume.
• Negative News: Negative news, such as security breaches or regulatory crackdowns, can lead to increased selling pressure and higher trading volume.
• Major Events: Significant events, such as the Bitcoin halving or major exchange listings, can trigger periods of increased volatility and trading volume.

Staying informed about these events and understanding their potential impact on the market is crucial for making informed trading decisions.Consider how news impacts volume – is the news confirming a trend or creating a short-term spike?

Challenges in Interpreting Bitcoin Volume

Despite its usefulness, interpreting Bitcoin volume can be challenging.Here are some common pitfalls to avoid:

• Data Fragmentation: As mentioned earlier, volume data is often fragmented across different exchanges and OTC markets, making it difficult to get a complete picture.
• Wash Trading: Some exchanges may engage in ""wash trading,"" where they artificially inflate trading volume by repeatedly buying and selling the same assets. Bitcoin Cash BCH $ 397.00 Toncoin TON $ 3.16 Shiba Inu SHIB $ 0.00 Hedera HBAR $ 0.17 Litecoin LTC $ 87.16 Polkadot DOT $ 3.90 Monero XMR $ 324.67 Ethena USDe USDe $ 1.00 Bitget Token BGB $ 4.60 Dai DAI $ 1.00 Pepe PEPE $ 0.00 Pi PI $ 0.62 Aave AAVE $ 251.76 Uniswap UNI $ 6.02 Bittensor TAO $ 367.82 OKB OKB $ 51.40 Aptos APT $ 4.62 Cronos CROThis can distort the true picture of market activity.
• Bots and Automated Trading: A significant portion of Bitcoin trading is conducted by bots and automated trading algorithms. Bitcoin (BTC) price per day from Aug to (in U.S. dollars) Premium Statistic Daily Bitcoin (BTC) 24h trade volume history up to market data analysisThis can lead to sudden spikes or drops in volume that are not necessarily indicative of underlying market sentiment.

Be aware of these challenges and consider them when analyzing volume data.Rely on multiple sources of information and cross-reference data to get a more accurate assessment of market conditions.

Practical Examples of Volume Analysis

Let's consider a few practical examples of how volume analysis can be applied in real-world trading scenarios:

• Identifying Breakouts: Suppose Bitcoin is trading in a range between $9,000 and $10,000. Bitcoin prices show much higher volatility and respond strongly to both regulatory changes and market events. [160] The volume of bitcoin trading can fluctuate considerably among various exchanges and geographic regions. The daily transaction volume of bitcoin across all exchanges typically reaches $50 billion as of 2025. [161]If the price breaks above $10,000 on high volume, it could be a sign of a genuine breakout. Bitcoin (BTC) Finds Support at $86,000 after Volatile Week. Bitcoin s price has experienced significant volatility over the past week, influenced by various economic and political developments. As of Saturday, Bitcoin is trading at approximately $86,000, reflecting a 7% decline from its peak earlier in the week.However, if the price breaks above $10,000 on low volume, it may be a ""fakeout"" and the price is likely to fall back into the range.
• Confirming Reversals: Suppose Bitcoin is in a downtrend and the price starts to bounce. This week Tone Vays introduces you to the intricacies of the Bitcoin trading Volume. Friday Aug 1st started out as an impressive day yet sold off near the end. Bitcoin Analysis: Week of Aug 10If the bounce is accompanied by increasing volume, it could be a sign of a potential trend reversal. Bitcoin trading volume 10m 1h 6h 24h 3d 7d 30d 6m 2y 5y all. auto second minute hour day week month Currency Exchange Spread depth Mining Pool Comparison Chart typeHowever, if the bounce is accompanied by decreasing volume, it may be a temporary pullback within the downtrend.
• Spotting Divergences: Suppose Bitcoins price is making higher highs, but the volume is declining.This is a bearish divergence, suggesting that the uptrend is losing momentum and a reversal is likely.

Bitcoins Price History and Volume: A Look Back

To further illustrate the relationship between price and volume, let's briefly revisit Bitcoins price history. So far in 12 months, Bitcoin has reached its highest price of $111,970.8 in May, 2025 and its lowest price of $49,675.79 in August, 2025. Related Lists Bitcoin (BTC) Technical Indicators (DAILY) BetaRemember back in July 2025, the Bitcoin Conference in Nashville preceded a sharp downside move in early August, with BTC/USD plummeting 30% from $70,000 to $49,000. The live Bitcoin price today is $105,514.38 as of, with a 24-hour trading volume of $22,912,037,062. Bitcoin's price is up 0.59% in the last 24 hours. Currently, Bitcoin ranks 1 out of coins according to CryptoMarketCap.Analyzing the volume during that period would have been crucial in understanding the strength and conviction behind the sell-off. The displayed volume is only from a small proportion of exchanges. The actual total trading volume is much higher. Part of the trading volume is also made outside crypto exchanges, for example in the OTC (Over The Counter) market. Methodology. The trading volume is the sum of the trading volume of the BTC/USD pair from some exchanges. DataHigh volume during the initial drop would have confirmed the bearish sentiment, while low volume might have suggested a potential for a quick recovery. Bitcoin whale volume to/from exchanges, net position change. According to Glassnode data, as of Aug. 1, 1,651 whale addresses held at least 1,000 BTC, up from 1,498 at the start of the yearMore recently, we saw Bitcoin rise above $100,000 in May 2025, and then fall as low as $49,675.79 in August 2025. Bitcoin is currently the most prominent virtual currency in terms of its market capitalization in the cryptocurrency market. Fig. 1 depicts the daily Bitstamp price index and the trading volume of Bitcoin in US dollars in the period spanning 20. The Bitstamp exchange suffered a security breach on Janu and suspended itsLooking at volume data helps to understand these major price swings.

Tools and Platforms for Volume Analysis

To effectively analyze Bitcoin trading volume, consider utilizing the following tools and platforms:

• TradingView: TradingView offers a comprehensive charting platform with a wide range of volume indicators and analysis tools.It also allows you to compare volume data from different exchanges.
• CoinMarketCap: CoinMarketCap provides historical volume data and market capitalization information for Bitcoin and other cryptocurrencies.
• Glassnode: Glassnode offers advanced on-chain analytics, including data on whale volume, exchange flows, and other metrics that can provide valuable insights into market activity.

The Future of Bitcoin Volume Analysis

As the Bitcoin market continues to evolve, the importance of volume analysis will only increase. Trading Volume. Daily bitcoin trading volume and market dominance. Volume reflects a 24-hour period of time. Dominance is a measure of bitcoin volume versus the entire cryptocurrency market. Historical volume goes back to 2025. Unit: US Dollars, Percent of Total Volume. Source: CoinMarketCap.com. Learn MoreThe development of more sophisticated analytical tools and the integration of on-chain data will provide traders with even more granular insights into market dynamics.Furthermore, the increasing institutional participation in the Bitcoin market will likely lead to greater liquidity and more predictable volume patterns.

Conclusion: Mastering Volume for Bitcoin Trading Success

Understanding and analyzing Bitcoin trading volume is an essential skill for any serious trader.By combining volume analysis with price action and other technical indicators, you can gain a more comprehensive understanding of market trends, identify potential trading opportunities, and avoid common pitfalls.Remember to consider the challenges associated with interpreting volume data and to rely on multiple sources of information. Bitcoin Analysis-Bitcoin Price vs. Trading Volume-Bitcoin Price Cycle vs. Price Returns: Bitcoin vs. Major Asset Classes-Bitcoin Treasuries in Public Traded Companies in 2025 -Market Capitalization: Bitcoin vs. Gold vs. Top-5 S P 500 Stocks 10 Erina Azmi Lucius Fang Win Win Benjamin Hor ExchangesThis week has offered an introduction, and we'll continue to refine this skill in the weeks to come.

Key Takeaways:

• Volume is the fuel that drives price.
• Analyze volume in conjunction with price action.
• Be aware of the challenges in interpreting volume data.
• Use volume to confirm trends, identify breakouts, and spot divergences.

Now that you have a better understanding of Bitcoin trading volume, put your knowledge to the test!Start analyzing volume data on your favorite trading platform and see how it can improve your trading decisions. This section was expended upon in last week s article where we categorized Bitcoin news into 5 groups. Unlike last week, which brought us big news from Dell and out of government offices in NYCRemember, consistent practice and continuous learning are key to success in the ever-evolving world of cryptocurrency trading. The Technical Analysis page contains the results of 12 common technical analytics over different periods of time. The analytics used are: Moving Average Price Change Percent Change Average Volume . The Moving Average is the average price of the security or contact for the Period shown. For example, a 9-period moving average is the average ofGood luck, and happy trading!