The increase in trading volume, decrease in open interest, and drop in price indicate that both bulls and bears have a strong interest in trading, but the bears are unwilling to continue increasing their positions. As discussed earlier, the downward momentum can be attributed to either the bears entering the market or the bulls closing their positions. The reduction in open interest within this 'price, volume, open interest' combination is largely due to the bulls closing their positions. Therefore, when the price significantly drops to a certain level (such as important round numbers or support levels of moving averages), the open interest no longer decreases. Once an increase in open interest is detected, it signals that the bulls intend to re-enter the market, which significantly increases the probability of a price rebound. Note that this refers to a rebound rather than a reversal; whether a reversal occurs depends on the sustainability of bullish capital. ☕ The price begins to decline, and the increase in trading volume shows that both bulls and bears are relatively active. However, the decrease in open interest indicates that despite the active trading from both sides, the transactions are primarily short-term trades characterized by quick entries and exits, reflecting a lack of strong holding intention. This wave of market decline is caused by the bulls closing their positions, leading to an increase in trading volume but a decrease in open interest, resulting in the 'price, volume, open interest' combination. If bullish capital can increase at a stage bottom, a wave of upward movement may occur. $ETH#我的COS交易 #币安Alpha上新 #加密市场反弹
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