Bitcoin News Today: Bitcoin Volume Spikes Mark Major Price Tops and Bottoms in April

On-chain analytics firm Santiment has revealed that two of the largest trading volume spikes in Bitcoin’s history coincided with significant price movements, marking what it describes as "buying and selling windows." The first spike, occurring in early April and involving $84.08 billion in trading volume, aligned with a price dip linked to regulatory developments. The second, in late April, saw volume surge to $90.9 billion as Bitcoin reached a new all-time high above $124,000 [1]. According to Santiment, these spikes offer clear signals for optimal timing to buy or sell the asset [1].

The firm explains that elevated trading volume typically indicates increased market activity and investor interest. High-volume days often precede major price swings, as large movements by traders can drive volatility. While volume alone does not distinguish between buying and selling pressure, the context of price trends can help clarify the nature of the activity. In April, for instance, the volume spike at a price low was interpreted as a buying opportunity, while the surge following a rally was seen as profit-taking [1].

Currently, Bitcoin’s trading volume remains elevated at around $66 billion, though it has not yet reached the levels observed during the previous turning points. Meanwhile, Bitcoin’s price has declined slightly to $113,000, reflecting ongoing bearish momentum. Santiment’s analysis suggests that monitoring on-chain volume can help traders anticipate key market inflection points, particularly in a volatile market like crypto [1].

The approach is grounded in the unique transparency of blockchain data, which allows for precise tracking of fund flows and transaction patterns. Santiment notes that these signals, when analyzed alongside price action, can offer early warnings of potential market tops and bottoms. As the firm highlights, the correlation between volume spikes and price extremes provides a data-driven method for understanding large investor behavior and market sentiment in real time [1].

Santiment’s insights align with a growing trend in the crypto space where on-chain analytics are becoming a crucial tool for both retail and institutional participants. The ability to interpret volume trends and other on-chain metrics is increasingly viewed as essential for navigating the unpredictable nature of the cryptocurrency market [1].

Source: [1] This Bitcoin Volume Signal Nailed The Top & Bottom (https://www.mitrade.com/insights/news/live-news/article-3-1059956-20250822)