$BTC Volume tells us how many buyers and sellers are active in the market. The higher the volume, the more reliable the price movement is.
✅ Trend Confirmation: If the price is going up and volume is also increasing, it means buying pressure is strong. If the price is going down with high volume, sellers are dominating the market.
✅ Weak Trend Indication: If the price is rising but volume is decreasing, the trend may not last long, and the price could reverse.
✅ Identifying Reversals: A sudden increase in volume at a certain point may indicate the start of a new trend, especially if the price is near a resistance or support level.
✅ Breakout Confirmation: If a support or resistance level is broken with high volume, the breakout is strong, and the price may continue moving in that direction. However, if the volume is low, it could be a false breakout.