Cryptocurrency trade volumes as the main confirmation of the trend

The volume of trading is a fundamental indicator of the trend in the cryptocurrency market. It reflects the real interest in the asset: how many users are bought or sold at the moment.

Without support, any price movement can be false or a consequence of the market manipulations.

It is especially important not just to see the total volume, but to understand what part of it falls on the purchases, and which - on sales.

This information gives a real idea of ​​who is now controlling the market - bulls or bears.

If the trend goes up, but the volumes fall, it is worthwhile to be wary. If the increase in the price is followed by an increase in volumes, especially the purchase transactions, this is a signal that the trend is confirmed by market activity.

Why are trade volumes so important

The volumes of trade are one of the main ways to confirm the reality of the market movement and the strength of the existing trend.

Market volumes help:

• Distinguish the real trend from the "empty" price movement.
• Understand where there are strong lines of support or resistance .
• Evaluate the liquidity and interest of traders in a specific asset.
• Identify the inputs of large players in surge of volumes.

The increase in volumes against the background of price growth indicates increased purchasing activity and the upward trend . But the fall in the price with an increase in volume may indicate the beginning of a descending trend.

Where to watch the total volumes of cryptocurrency trade

The total volume shows how many funds have passed through trading platforms for a certain period (most often 24 hours). It includes both purchases and sales, without dividing in directions.

The total volumes of cryptocurrencies can be seen at:

• Coinmarketcap ( https://coinmarketcap.com ) - shows the daily volume of each cryptocurrency, as well as the global volume of the market.
• Coingecko ( https://www.coingecko.com ) - a convenient display of volumes on assets and exchanges, you can use the sorting.
• Binance, Bybit, OKX - the 24 -hour volume of each trading pair is displayed in the sections of Markets and Spot.
• TradingView - displays a histogram of volume under the schedule, helps to visually compare the movement of prices with activity.

These sources are suitable for basic analysis and general understanding of the level of liquidity by a specific asset.

Where to watch the volume of purchases and sales in the direction of transactions

For a deeper analysis, you need to separately evaluate how much volume is for buyers and how many - for sellers.

Such data is called ORDER FLOW or Delta-volumes, and they are available through special platforms:

Tradinglite, BookMap - visualize the flow of market orders, show the "heat card" of liquidity and the direction of volume. They allow you to see at what levels large applications are placed and where they “push” the price.

ATAS, Quantower, ExoCharts - professional level terminals for analysis:

• Buy Volume (purchase volume)
• Sell ​​Volume (sales volume)
• DELTA (difference between purchases and sales)
• Cumulative Volume Delta (accumulated delta)

Binance Futures / Bybit Futures - there are open interest indicators in the futures markets, the positions of customers and sellers, as well as Delta data that can be analyzed through API or terminals.

Trade volumes are no less important than the price itself. They allow not only to monitor the trend, but also to understand who controls the market at the moment.

For basic analysis, there is enough general information with Coinmarketcap or Binance. But if you want to really delve into the market structure, track the volumes for the purchase and sale separately-use the platforms with the Order Flow analysis and delta. And as an additional tool, you can use indicators of volumes for the trading platform .