What on-chain signals indicate a divergence between price and volume?
Confirm the differences in Bitcoin trading volume, on-chain metrics related to exchanges, on-chain trading volume, issuance (whales and retail), and NVT/MVRV. [1][2][3][4]
## Flow Exchange (Inflow/Outflow)
- [1][2][5]
- Bullish Divergence: Price weakness or continued sideways breakouts, despite the lack of 'visible' trading volume on the charts, reduces liquidity supply and supports the idea of accumulation. [2][5][6]
## On-chain Volume NVT
- If BTC's value is maximized, then the on-chain economic overview (value in RMB) will not differ from NVT, usually indicating overvaluation, and actual network usage struggles to support such growth. [7][3]
- Conversely, with the increase in liquidity and NVT [7][3]
## Supplement and replenish
- With the increase in supply held by short-term traders and the decrease in long-term holders, it shows distribution;
- If you are interested in long-term holders, please pay attention to the purchasing power of long-term holders, and reduce the sordo in exchanges, speak in silence and accumulate, and be compatible with the differences in quantity.
## Maximum market (stepping market)
- Secret sell-off: A surge in large transactions leads to a reduction in positions by exchanges or 'smart money', while prices remain elevated, exacerbating the bearish divergence between price and volume.
- Accumulation: Continuously conduct extensive testing on all items, and in visible situations, redistribute large amounts of mixtures to a position that can be redistributed to activate the market.
## Usage during analysis
- If you see the following situations, the technical divergence on the chart will intensify: increased inflow volume + high NVT + short-term distribution at the top of the cycle (possibly a top signal)
- For the bottom, combination: breakthrough volume, long-term increase
