Volume Profile is displaying massive amounts of accumulation of altcoins with Bitcoin. Size of these value areas are some of the largest in their history and have achieved those volume levels in a short amount of time.
I think one of the biggest things that have been missed by many traders and investors is the sheer amount of volume involved at these present value areas in the altcoin markets. The charts below will show the Volume Profile. The Volume Profile is a part of VAP (Volume-At-Price Analysis) and is displayed by horizontal rows as opposed to a normal volume indicator which displays volume with vertical rows. A Volume Profile is unique because it is showing how much of something was bought and sold at a particular price – not a particular time. These rows are then described as high-volume nodes and low volume nodes. High volume nodes indicate an area of equilibrium and are also extremely strong support and resistance levels. Some of the trading theory involved with Volume Profile is to look for price to break above or below a high-volume node. The space in-between high-volume nodes acts as a sort of ‘vacuum’ that price gets ‘sucked’ into and then moves towards the next high-volume node. A significant number of altcoins are about to do just that.
Cardano’s Bitcoin chart shows two primary high-volume. The first high volume node (1) shows 4.52 billion Cardano traded around the 1050 sats value area. It took 280 trading days to accumulate that much trading volume. But then we get to our second-high volume node (2). It has only taken 60 trading days to accumulate 3 billion Cardano at the 450 sats level. That means that that in the time it took the first high volume node to accumulate 4.52 billion Cardano, the second-high volume node has accumulated 65% of that volume in 22% of the time. This tells me that we could have found a bottom for Cardano against Bitcoin and that we could experience a very bullish drive higher in the very near future. If price breaks above 490 sats then we should anticipate a move to the next high-volume node which is at 1100 sats – a +124.89% increase.
Golem’s chart is another great example of the amount of accumulation in a short period of time. High volume node one (1) shows 161.80 million Golem traded in 133 trading days. The second-high volume node has traded 141.14 million Golem in 87 trading days. In other words, high volume node 2 has traded 87% of the volume in just 65.5% of the time. Like Cardano, Golem has had a significant amount of trading occurring in a short amount of time and at all-time market lows. I have some buy stops resting above the 670 sats value area. There is a high volume node just above 670 at 1200 – a +77.41% gain. And above that is high volume node 1at 1750 sats, +161.32%. I am expecting a slight pause around the 670 value area before another drive higher to high volume node 1.
STEEM used to be one of my favorite projects, but I felt it was completely abandoned by its team and I stopped hodling it. However, I will trade it if it shows some opportunity. STEEM’s chart is different than the other two crypto charts we looked at. STEEM’s point of control is at 1781 sats. I am looking for a price break above 2000 sat level with two profit targets. The first at the high volume node at 4800 sats (+143.12%) and the second target that prior point of control near 8500 (+324.12). I do want to point out that these three charts are not the only altcoins with Bitcoin pairs that show large amounts of trading volume near their all-time lows. There are other altcoins that have similar looking charts – and others that do not.