Bitcoin has seen a dramatic increase in its trading volume over the past two weeks, the most significant spike noted since the start of the year, according to insights from Santiment, a behavior analysis platform. A striking $90.90 billion surge, which coincided with a peak at an all-time high of over $124,000, highlights key moments for strategic trading.
What Do These Volume Changes Mean?
The initial volume spike was linked with massive sales, presenting favorable entry points for buyers. In contrast, the subsequent, even larger volume surge aligned with record price peaks, creating an advantageous scenario for sellers looking to capitalize on profits.
“Bitcoin’s biggest two volume surges indicated the most opportune moments for buying amid price dips and for selling at price peaks.” – Santiment
Can Satisfaction and Skeptics Coexist?
Yes, the crowd sentiment on social media turned more negative than any time since June, reflecting growing pessimism in market psychology. This change has brought a more cautious, short-term approach to pricing, especially during periods of extensive profit-taking following price surges.
Glassnode, another data analytics firm, recently reported significant activity involving Bitcoin accumulation and profit-taking. Initial Buyers purchased around 50,000 BTC within five days, whereas cautious accumulation was seen among Loyal Buyers. Additionally, “Loss Sellers” became more apparent, with their share growing by roughly 38%. This activity resulted in wallets reaching their highest profit levels of the year, with long-term investors gaining substantial returns from Bitcoin, Ethereum (ETH), XRP, and Solana (SOL).
The following key points emerged from the data:
- The number of Bitcoin purchased by new entrants as well as long-term holders is increasing.
- Bitcoin managed to deliver a significant $1.5 billion profit by July 18, 2024.
- The annual growth rate remains strong at around 90%, testament to its resilience.
- The recent price of Bitcoin, as of the latest data, stood at $113,705, despite weekly and monthly declines.
The observed trading patterns outline pivotal moments that investors should be vigilant about. While the cautious sentiment and profit realization suggest a careful approach, the opportunities for buying during dips and selling at peaks continue to attract attention. The dynamics in Bitcoin trading showcase both risks and rewards, emphasizing strategic decision-making in the cryptocurrency market.
