Understand the relationship between volume and price in the cryptocurrency market in one article
To help brothers better understand the relationship between volume and price in the cryptocurrency market. Refer to this mind map and the mnemonic table below: 1. Volume increases while price rises ① Bull Market Initial Rise Stage: May signal the completion of a bottom, with new highs in volume usually correlating with new highs in price. ② Head Consolidation End: May signal the end of the bull market for the currency price. ③ Bull Market Late Rise Stage: Pay attention to signals of exhaustion in the bull market to prevent the main force from raising prices to sell off. ④ Bear Market Consolidation Rebound: Volume increases while price rises, the rebound continues; if volume increases but price does not rise, it indicates the end of the rebound. ⑤ Bear Market Final Bottom Consolidation: The currency price enters a bottoming period, completing the bottom formation, and the trend will shift from bearish to bullish.
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