Quant Explains How US Stock Market Volumes Influence Bitcoin Price

Name	Symbol	Market	Market Cap ($)	Algorithm
Dogecoin	DOGEUSD	Crypto	21,415,861,673	Scrypt

Name

Symbol

Market

Market Cap ($)

Algorithm

Dogecoin

DOGEUSD

Crypto

21,415,861,673

Scrypt

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-0.00172	-1.14%	0.14955	0.1495	0.14953

Price Change

Price Change %

Current Price

Bid Price

Offer

-0.00172

-1.14%

0.14955

0.1495

0.14953

High Price	Low Price	Open Price	Prev. Close	52 Week Range
0.15178	0.14683	0.15141	0.15127	0.055475 - 0.228990

High Price

Low Price

Open Price

Prev. Close

52 Week Range

0.15178

0.14683

0.15141

0.15127

0.055475 - 0.228990

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	19:32:17	39,953.70	0.14955	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

19:32:17

39,953.70

0.14955

USD

Price x Volume	Volume	Base Symbol	Related Pairs
35,809,564.06	239,581,219.37	DOGE	DOGEEUR	DOGEGBP	DOGEBTC

Price x Volume

Volume

Base Symbol

Related Pairs

35,809,564.06

239,581,219.37

Quant Explains How US Stock Market Volumes Influence Bitcoin Price

03/10/2022 8:00pm

NEWSBTC

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 As explained by an analyst in a 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 stock market. 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. Related Reading: Bitcoin Bullish Signal: Exchange Outflows Spike Up Using an oscillator, 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. Related Reading: Here Is How Uniglo.io (GLO) Has Infinitely More Use Case Than Bitcoin (BTC) And Dogecoin (DOGE) 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 Price At the time of writing, Bitcoin’s price floats around $19.2k, up 2% in the last seven days. Over the past month, the crypto has lost 4% in value. The below chart shows the trend in the price of the coin over the last five days. Looks like the value of the crypto has been stuck in consolidation during the past few days | Source: BTCUSD on TradingView Featured image from Traxer on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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DOGEUSD Dogecoin