Pre-Spike Flow

Definition ∞ Pre-spike flow refers to the observed transaction activity or market order movements occurring before a significant price increase. This term is used in market analysis to identify patterns of increased buying pressure, large order placements, or unusual on-chain activity that precedes a sharp upward price movement in a digital asset. Detecting pre-spike flow can provide early indications of impending market volatility. Analysts often scrutinize these movements to gain insights into potential market manipulation or institutional interest.
Context ∞ News and market commentary frequently discuss pre-spike flow when analyzing sudden cryptocurrency price surges. Traders and data analysts often seek to identify these signals using advanced on-chain metrics and order book analysis. Understanding pre-spike flow is critical for anticipating market shifts and managing trading risks.