Bitcoin is currently showing a shrinking and rising trend, and the trading volume has not increased significantly. This situation is usually considered to be the market's consensus on the current price level, without a large-scale buy-sell divergence, and therefore can be regarded as a positive sign.
In market analysis, trading volume is often regarded as an important indicator of market changes. Generally speaking, the bottom and top of the market will be accompanied by an increase in trading volume. For example, the heavy volume decline in Bitcoin prices at $25,000 in August last year marked the formation of a market bottom. In August this year, the heavy volume decline in the price of Bitcoin at $49,000 was also regarded as a signal of the bottom of the market.
Subsequently, Bitcoin experienced a shrinkage increase, which usually means that market participants are more consistent in their views on the price, and there was no large-scale selling or panic buying, which is a healthy sign that the market is steadily rising.
Therefore, the shrinking increase does not need to cause concern, but is a positive phenomenon. If trading volume suddenly increases, it may mean that the market top has arrived, because it may indicate that investors have begun to ship on a large scale and have divergence on the price.
At present, investors holding spot and low-multiple contracts can maintain a stable position strategy. In the long term, the market remains bullish. The election in early November and a possible second rate cut could both be positive factors for the market. Especially if a certain politician is elected, it may have a significant impact on the market. At that time, investors may need to consider how to reasonably plan their wealth.