What does increasing trading volume means to traders?
What does increasing trading volume means to traders?
I know bitcoin is highly liquid enough. One of the exchanges that I am using sent me a push notification which says that the trading volume for BTCUSDT has increased.
I know what trading volume is but why the notification? Are traders using it to take advantage in the market to make profit?
Cinthia ETH Answered question August 20, 2024
A sudden increase in trading volume means there’s an interest in the coin. It doesn’t necessarily mean that the price is going to increase but it’s a good indication that there’s hype, interest, liquidity…. That’s usually how those “signal bot” works if I’m not mistaken. Based on the trading volume.
Samuel Goldenberg Answered question August 20, 2024