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What you must know about the currency circle: the secret relationship between volume and market

1. Rising market
① Volume increase and price increase: the currency price rises, the volume is amplified simultaneously, the bulls dominate, and the upward trend is easy to continue, such as the rise of Bitcoin in the first half of 2021.

② Volume parity price increase: the price rises, the volume is stable, the holders are reluctant to sell, and the chips are well locked, but it is difficult to maintain for a long time.

③ Volume reduction and price increase: the currency price rises but the volume decreases, forming a divergence, insufficient upward momentum, and easy to pull back.

2. Falling market
① Volume increase and price drop: the currency price falls and the volume is large, panic spreads, the short position is strong, and the downward trend may continue.

② Volume parity drop: the volume is stable, the currency price falls, the selling is stable, the buying is weak, and the currency price may continue to fall.

③ Volume reduction and price drop: the selling is weakened, the buying is not active, the currency price may be near the bottom, or it may fall after sideways at a low level.

3. Consolidation market
① Volume enlargement: it may break the balance, and the market may choose a direction.

② Volume is reduced: trading is light, long and short positions are cautious, and the market may continue to consolidate.

The current market is not good, so it is recommended that you do not operate frequently. You can take time to study hard and improve your own cognition!