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BTC
We will start today’s analysis with the cryptocurrency market and the leader. Yesterday we discussed ETH in which you can say that the volumes look very similar. Turnover on both instruments has similar dynamics, but today I will discuss two scenarios for people who do not know how to read the lines at the bottom of the chart that indicate the number of purchased and sold cryptocurrencies in a given period.
I have presented two drawings. The first is the scenario we are waiting for, and it is worth taking into account when we want to start buying or hold, fearing that when we sell, the price will increase without us. The volume is currently still slightly larger than it was when the peaks were calmly held and investors are actively participating in the exchange. Probably small profits are collected but more often so you can see that the situation is changing very calmly. An important aspect is that the turnover during price drops does not increase too much, then it may mean selling more BTC. If the volume starts to increase during the price increase, there is a chance that more and more BitCoins are collected before a stronger rebound.
The second volume-based scenario is presented directly when there is a danger of further declines. The increasing volume as pictured as the price descends may indicate that investors are getting rid of their crypto. And the decreasing volume during rebound will mean that the demand side has ceased to dominate and there are definitely fewer people willing to buy than those who want to cash their crypto assets.
