The post How to Conduct Volume Analysis on Bitcoin appeared on BitcoinEthereumNews.com.

Volume analysis is considered a powerful tool for trading crypto, particularly on Bitcoin.  In fact, the analysis of price trends tells only part of the story, while the analysis of trading volumes reveals the strength of price movements.  For example, a potential price increase accompanied by high volumes indicates investor confidence, whereas an identical movement with low volumes might need to be considered a false signal or a trap.  Volumes “Trading volumes” refer to the total number of BTC, or their equivalent in fiat currency, traded on an exchange or in the markets over a specific time period.  Volumes can be analyzed across different timeframes, although the most commonly used is the daily timeframe.  When analyzing Bitcoin’s price trends over a specific period, it is always advisable to also examine the trading volumes during the same timeframe.  However, besides the timeframe, there are two other variables to consider when conducting volume analysis on Bitcoin.  The first concerns the markets that are taken into consideration.  In fact, often volumetric data is available only on individual exchange platforms, or even on specific trading pairs.  For example, not only do the volumes on Binance differ from those on Coinbase, Bybit, or Bitget, but they also vary from pair to pair, such as from BTC/USD to BTC/USDT or BTC/USDC.  The second variable is the unit of measurement.  In theory, the best approach would be to use BTC itself as the unit of measurement for traded volumes, as it simplifies calculations. However, in practice, USD is predominantly used, which complicates things a bit.  First of all, it would be necessary to aggregate the trading volumes of the major exchanges to obtain a more comprehensive picture (although a volumetric analysis conducted on a large exchange can often be sufficient).  Furthermore, it would be necessary to sum…

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Filed under: News - @ December 25, 2025 1:27 pm