The magnitude of spot trade volume is equivalent to the levels seen during the 2020 to 2021 bull market, said analysts at Glassnode.

Bitcoin has rallied 145% in the last year and is currently trading around $69,300 — onchain analytics firm Glassnode said that most of this price action over the last 12 months has been driven by both spot trade volume and exchange deposits and withdrawals. 

In its latest weekly report examining the state of the crypto market, Glassnode noted that the market has transitioned into a euphoric phase and profit taking has climbed accordingly. 

In this edition, we analyse the surge in both spot trading and on-chain exchange volumes for #Bitcoin, underlying the assets strong YTD performance.

The market has also transitioned into a euphoric phase, with profit-taking climbing accordingly.

Discover more in the latest… pic.twitter.com/nPaWMGA2Es

— glassnode (@glassnode) April 9, 2024

A big part of the surge in bitcoin trading volumes followed the approval of spot bitcoin exchange-traded funds (ETFs) that went live in January, with daily trading volumes peaking at $14.1 billion around the middle of March, which was when bitcoin touched a new all-time high ahead of $73,000.

Based on Glassnode’s analysis, it would appear that spot trading volume significantly picked up as early as October 2023, when faster average trades were significantly higher than the slower ones. Glassnode employ a slow/fast-moving average model to assess overall market momentum.

Profit taking among long-term holders was up considerably during periods when bitcoin traded around a new all-time high (ATH).

“If we compare the ATH break in prior cycles, it could be argued that the  current Euphoria phase (market in price discovery) is still relatively young,” said Glassnode analysts.

 “Previous Euphoria phases have seen numerous price drawdowns exceeding -10%, with the majority being much deeper, with 25%+ being commonplace. The current market has seen just two ~10%+ corrections since the ATH was broken.”

The notion that the market is in its “euphoria phase” is further reinforced by the Fear and Greed index, which currently sits at a reading of 78 or “extreme greed.”

Bitcoin Fear and Greed Index is 78 — Extreme Greed
Current price: $69,140 pic.twitter.com/UPXPyxNkOm

— Bitcoin Fear and Greed Index (@BitcoinFear) April 10, 2024

According to one crypto trader, the $69,500 and $70,800 will be the bitcoin price levels to watch based on liquidation data as marker participants look for liquidity.