Volume Index
A 0–10 score showing how often an address moves significant BTC, calibrated against comparable whales. 8+ means top 5%, 9.5+ means top 1% of all tracked whales. Higher = more active, not more profitable.
Position Sizing Based on Address Volume Index
On-chain analysis · 60 seconds
Position Sizing Based on Address Volume Index: key takeaways
- Address Volume Index tracks how many wallets are moving coins
- High index = scattered selling; low index = whale concentration
- Position size shrinks when whales accumulate, grows on distribution
- Smart traders fade retail moves, follow whale clustering patterns
Position Sizing Based on Address Volume Index — full explainer
Why do most traders lose money right before the biggest moves? Because they're watching price, not wallet behavior. Here's the secret: the Address Volume Index shows you exactly how many wallets are actually moving Bitcoin. When that number spikes, it usually means retail traders panic-selling in small chunks—a weak signal. But when it drops and stays low? That's whales quietly accumulating. Smart position sizing means you shrink your risk when addresses are scattered and fragmented, then scale up when you see concentrated whale activity clustering. The biggest winners don't chase volume spikes—they fade them and follow the smart money instead.
Originally posted on YouTube: https://youtu.be/kR4dJ7sNecI
Glossary terms used in this explainer
Whale
Transactions of 500 BTC or larger but below the Mega Whale threshold (1,000 BTC). Common for large traders, OTC desks, exchange operations, and treasury management. Most actionable tier for daily flow analysis.