When $BTC is trading at $81,763, its 24-hour volume is $1.23 billion. This volume is 3.5% higher than its 7-day average. Volume shows how much an asset is traded.
When price makes a big move, especially breaking above a resistance level or to a new high, strong volume is important. High volume confirms that many traders are participating in the move, giving it more strength. If $BTC were to break past its 7-day high of $84,352 on low or average volume, it would be a warning sign. Such moves often fail because there is not enough conviction from buyers. Conversely, a price drop on very high volume can suggest strong selling pressure.
Always look for volume to confirm price action when key levels are tested. 📈
#VolumeAnalysis #TradingBasics
When price makes a big move, especially breaking above a resistance level or to a new high, strong volume is important. High volume confirms that many traders are participating in the move, giving it more strength. If $BTC were to break past its 7-day high of $84,352 on low or average volume, it would be a warning sign. Such moves often fail because there is not enough conviction from buyers. Conversely, a price drop on very high volume can suggest strong selling pressure.
Always look for volume to confirm price action when key levels are tested. 📈
#VolumeAnalysis #TradingBasics