In trading within the crypto circle, what is the most reassuring trend? It's not just a simple price increase, but simultaneous expansion of trading volume and price—this is the so-called "volume increase and price rise."
Why is this pattern worth paying attention to? Simply put, genuine funds are flowing in. When the price moves upward and trading volume also increases, it indicates that buying interest is indeed strengthening, and the bullish forces are taking the lead. This is not a false rally but a sign of increased genuine market participation.
However, the significance of this pattern varies depending on where it appears. If volume increase and price rise occur at a low point or during the initial upward movement, it’s highly likely that the bottom is in place and a new trend is starting. Major funds might be accumulating or beginning to push the price higher. During the main upward wave, this becomes even more evident—market sentiment is high, upward momentum is sufficient, and traders can consider actively entering the market or looking for support levels during minor pullbacks.
But don’t be blindly optimistic. If a huge volume suddenly appears at a high level but the rate of increase begins to slow down, you should be cautious—this could indicate growing bullish-bearish divergence and the risk of a short-term top approaching.
Overall, volume increase and price rise are the most attractive pattern in a bullish arrangement and the most desirable combination for traders. Recognizing this can be quite helpful for your trading decisions.
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OnchainHolmes
· 22h ago
Increasing volume and rising prices sound good, but I still say the same thing: I haven't seen the main players truly put their money on the line; it's all just talk.
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gas_fee_trauma
· 22h ago
The idea that volume increases and prices rise has been heard a hundred times; ultimately, it still depends on whether the main players are seriously investing money.
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NFTRegretter
· 22h ago
The increase in volume and rising prices sound good, but I'm more concerned about when the main players will run away haha
In trading within the crypto circle, what is the most reassuring trend? It's not just a simple price increase, but simultaneous expansion of trading volume and price—this is the so-called "volume increase and price rise."
Why is this pattern worth paying attention to? Simply put, genuine funds are flowing in. When the price moves upward and trading volume also increases, it indicates that buying interest is indeed strengthening, and the bullish forces are taking the lead. This is not a false rally but a sign of increased genuine market participation.
However, the significance of this pattern varies depending on where it appears. If volume increase and price rise occur at a low point or during the initial upward movement, it’s highly likely that the bottom is in place and a new trend is starting. Major funds might be accumulating or beginning to push the price higher. During the main upward wave, this becomes even more evident—market sentiment is high, upward momentum is sufficient, and traders can consider actively entering the market or looking for support levels during minor pullbacks.
But don’t be blindly optimistic. If a huge volume suddenly appears at a high level but the rate of increase begins to slow down, you should be cautious—this could indicate growing bullish-bearish divergence and the risk of a short-term top approaching.
Overall, volume increase and price rise are the most attractive pattern in a bullish arrangement and the most desirable combination for traders. Recognizing this can be quite helpful for your trading decisions.