Bitcoin (BTC), Bear Market Ending?...Volume Reversal Detected

▲ Virtual Asset Trading

As cryptocurrency exchange trading volume rebounded sharply in August, signals emerged that the prolonged bearish trend might be coming to an end.

According to crypto media outlet BeInCrypto on September 15 (local time), CryptoQuant stated that the spot trading volume of centralized exchanges surged to approximately $75 billion on August 21. This was the second largest daily trading volume since the peak in February. On the same day, perpetual futures trading volume reached approximately $336 billion, marking the highest level since March.

In the spot market, Binance handled the largest volume at $19.4 billion. Coinbase followed with $8 billion, and Gate with $5.1 billion. What CryptoQuant focused on was the direction of the volume surge. Earlier volume surges this year occurred with price declines, indicating a rush of selling demand. However, in August, trading increased as major cryptocurrencies like Bitcoin (BTC) rose by 25%. CryptoQuant interpreted this as a sign of actual buying interest flowing in.

The increase in trading spread across major exchanges. The 30-day change rate for spot trading volume recorded its fastest increase this year around August 25. Gate increased by 667%, Coinbase by 429%, and OKX by 213%. Binance and smaller exchanges also saw increases of approximately 157-163%.

In the futures market, leveraged trading recovered even more significantly. Among the perpetual futures trading volume on August 21, Binance accounted for $124 billion, OKX for $46 billion, and MEXC for $30 billion. However, CryptoQuant pointed out that a significant portion of the surge in futures trading volume came from the liquidation of short positions and short covering that occurred during the price increase. The 30-day increase rate for futures trading volume recorded 202% for Binance and 184% for Bybit, and recently accelerated to 407% for OKX, 378% for Coinbase, and 305% for Gate.

CryptoQuant stated, "The recovery in trading volume could be another sign that the bearish downtrend is ending and aligns with the early bullish phase that has begun across the cryptocurrency market." The fact that spot trading volume increased along with price rises showed a distinct difference from the previous selling-driven volume surges earlier this year.

[Article Key Summary]

-On August 21, cryptocurrency spot trading volume surged to approximately $75 billion, and perpetual futures trading volume to approximately $336 billion.

-Gate's spot trading volume saw a 30-day increase of 667%, Coinbase 429%, and OKX 213%.

-CryptoQuant assessed that this increase in trading volume, occurring with rising prices rather than selling pressure, is a signal indicating the possible end of the bear market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*