TrasmaderGharga
A little knowledge removed a lot of ignorance. (Ali ibn Abi Talib)
Regelmäßiger Trader
3.7 Jahre
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Übersetzung ansehen
Headline: Understanding Market Intent with OBV
Price action tells one story, but On-Balance Volume (OBV) provides the data behind it. For those looking to understand the strength of a trend, OBV is an essential tool for volume analysis.
How OBV Functions:
OBV is a cumulative indicator that measures buying and selling pressure.
If the price closes higher than the previous close, the day's volume is added.
If the price closes lower, the volume is subtracted.
This creates a running total that shows whether the volume is truly supporting the price movement.
Analyzing the $BTC / $USDT Chart:
In the recent Bitcoin data, we see a significant technical signal. While the price reached local highs near $104k, the OBV began to trend downward. This is known as a Bearish Divergence.
When price increases while volume flow decreases, it often suggests that buying momentum is losing strength. Historically, this can be a precursor to a period of consolidation or a technical correction.
The Key Takeaway:
In a volatile market, volume acts as a confirmation tool. If you see a price breakout without a corresponding rise in OBV, it may lack the conviction needed for a sustained move.
This content is for informational purposes only. Always conduct your own research before making market decisions.
#btc70k Price Analysis
#Bitcoin Price Prediction: What is Bitcoins next move?# #Bitcoin
Price action tells one story, but On-Balance Volume (OBV) provides the data behind it. For those looking to understand the strength of a trend, OBV is an essential tool for volume analysis.
How OBV Functions:
OBV is a cumulative indicator that measures buying and selling pressure.
If the price closes higher than the previous close, the day's volume is added.
If the price closes lower, the volume is subtracted.
This creates a running total that shows whether the volume is truly supporting the price movement.
Analyzing the $BTC / $USDT Chart:
In the recent Bitcoin data, we see a significant technical signal. While the price reached local highs near $104k, the OBV began to trend downward. This is known as a Bearish Divergence.
When price increases while volume flow decreases, it often suggests that buying momentum is losing strength. Historically, this can be a precursor to a period of consolidation or a technical correction.
The Key Takeaway:
In a volatile market, volume acts as a confirmation tool. If you see a price breakout without a corresponding rise in OBV, it may lack the conviction needed for a sustained move.
This content is for informational purposes only. Always conduct your own research before making market decisions.
#btc70k Price Analysis
#Bitcoin Price Prediction: What is Bitcoins next move?# #Bitcoin
Übersetzung ansehen
Crypto first and last rule: Do not panic
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