Crypto Market - Volume Observation
Not TA, just another observation. We see a declining volume since the start of 2021. We've since marked several local tops and bumped the ATH to low 60ks.
My food for thought: Is retail tapped out at this juncture? Industry seems pleased to accumulate at this point- we have healthy exchange outflows and lack a meaningful selloff like we saw in previous corrections indicating strong indecision in for a great deal of the market, or the catalyst for a strong impulse needed to break through 60k isn't here yet. We also can't rule out some influence on the market by big money.
When ranges like this occur, we can reference volume at different parts of the pattern for indications of possible breakout direction- if volume rises when price rises, we might say the volume indicates a bullish bias., and the opposite for high volume on price declines
Bottom Line: When we look at the weekly candles for the past ~6 weeks, the red weeks show a rise in volume , while green weeks show a decline in price. That tells me that odds are better for a correction or a continued downtrend to post. However, its important to consider this is only one indicator among money, so measured against other factors this might simply read as a netural signal.
Time will tell, but I'd be postured for the possibility of a correction yet to come, before we manage to breakthrough the ATH again. That or some strong catalyst, whether its news, industry investments or something else to lift us past this ranging slump. In the meantime, enjoy the alt season and best of luck.
My food for thought: Is retail tapped out at this juncture? Industry seems pleased to accumulate at this point- we have healthy exchange outflows and lack a meaningful selloff like we saw in previous corrections indicating strong indecision in for a great deal of the market, or the catalyst for a strong impulse needed to break through 60k isn't here yet. We also can't rule out some influence on the market by big money.
When ranges like this occur, we can reference volume at different parts of the pattern for indications of possible breakout direction- if volume rises when price rises, we might say the volume indicates a bullish bias., and the opposite for high volume on price declines
Bottom Line: When we look at the weekly candles for the past ~6 weeks, the red weeks show a rise in volume , while green weeks show a decline in price. That tells me that odds are better for a correction or a continued downtrend to post. However, its important to consider this is only one indicator among money, so measured against other factors this might simply read as a netural signal.
Time will tell, but I'd be postured for the possibility of a correction yet to come, before we manage to breakthrough the ATH again. That or some strong catalyst, whether its news, industry investments or something else to lift us past this ranging slump. In the meantime, enjoy the alt season and best of luck.
Wyłączenie odpowiedzialności
Informacje i publikacje przygotowane przez TradingView lub jego użytkowników, prezentowane na tej stronie, nie stanowią rekomendacji ani porad handlowych, inwestycyjnych i finansowych i nie powinny być w ten sposób traktowane ani wykorzystywane. Więcej informacji na ten temat znajdziesz w naszym Regulaminie.