A quant has explained how there is a connection between the recent trends in the US stock market volumes and the Bitcoin price.
TradFi Depth Oscillator Has Hit A Low And Is Now Turning Back Up
Wéi erkläert vun engem Analyst an engem CryptoQuant Post, the volume depth in traditional finance markets has been low recently.
The “TradFi volume” is a measure of the total amount of transactions that buyers and sellers are making on the US Bourse.
There is a concept called “market depth,” which is the ability of any market to take in large orders without impacting the price of the commodity much.
Generally, the more orders there are in a market, or simply, the higher its volume, the stronger the depth of the asset. However, something important is that these orders should be spread evenly within the market, otherwise the depth wouldn’t be as great.
Mat engem Oszilléierer, the cyclical trend in the depth of any asset can be noticed. Here is a chart that shows how the US stock market volume depth oscillator has changed its values during the last few months:
The value of the metric seems to have been turning around in recent days | Source: CryptoQuant
As you can see in the above graph, the quant has marked the relevant zones of trend between the Bitcoin price and the TradFi volume depth oscillator.
It looks like whenever the indicator has transitioned from positive to negative values, the value of the crypto has observed bearish winds.
On the other hand, the metric crossing the zero line the opposite way has lead to a bullish trend for the price of BTC.
Bitcoin has also seen local bottom formations around the points where the stock market volume depth oscillator itself has hit lows.
About a week ago, the indicator hit very low values that were comparable to those between February and March 2020. Since then, the metric has started turning back up.
The analyst believes that this recent trend formation could imply that Bitcoin may see a respite soon, and bounce to levels between $21.5k to $24.5k.
Bitcoin Präis
Zu der Zäit vum Schreiwen. De Präis vum Bitcoin schwëmmt ronderëm $19.2k, erop 2% an de leschten siwen Deeg. Am leschte Mount huet d'Krypto 4% am Wäert verluer.
Déi ënnescht Grafik weist den Trend vum Präis vun der Mënz an de leschten fënnef Deeg.
Looks like the value of the crypto has been stuck in consolidation during the past few days | Source: BTCUSD op TradingView
Featured Bild vun Traxer op Unsplash.com, Charts vun TradingView.com, CryptoQuant.com
Source: https://www.newsbtc.com/news/bitcoin/quant-explains-stock-market-volumes-bitcoin-price/