In this video, Jake Wujastyk from TrendSpider goes over how to use the “anchored volume by price” and the “seasonality” tool on Bitcoin from July 22nd. In this video, Jake identifies a large amount of volume holding at the $9,400 area which created a “volume shelf” for the price. The volume shelf is essentially the point of control but more of an area, rather than just one price interval. When price trades at these volume shelves, they can sometimes become “launchpads” for the price as a base is then created due to a large amount of people breakeven that are holding in this area. Once this occurs, supply and demand kick in as well as overall market psychology. If a majority of people are holding at breakeven and supply drys up, demand does not even have to increase (only relative demand vs. supply) in order for the price to move up rather quickly. If you have a decrease in supply (because people stopped selling at a loss and all supply has been absorbed) AND an increase in demand, you will have a meteoric move up, similar to what happened to Bitcoin from late July 2020 to early August.
The seasonality feature is then used in the second half of this video to complement the bullish setup. This tool allows a user to look back over a certain period of time in order to see how a particular asset or security has performed over different months, weeks, days, or hours. In this case, Jake looks at the monthly seasonality for Bitcoin which shows an increase in the “positivity rate (the % of the time the stock has closed green for that particular month)”. This ability to see how an asset has performed allows the user to use a mix of both technical analysis and seasonality to gain a more defined edge in the market.
If you have any questions, please feel free to reach out to Jake or check out their YouTube channel “TrendSpider” to learn more about this feature.