$BTC: Understanding the Psychology of Volume.

$BTC: Understanding the Psychology of Volume.

Time to wake you up and always keep everyone in check here to avoid irrational euphoria.

I would like to talk to you about Volume here and how much of a significance it plays in this market.

Here’s the case: when volume goes down, and the price goes up, this is already 1 gigantic concern.

Let me explain to you why.

the price is currently rising with low volume because the investors are simply just, holding.

You can clearly see previously on that bullrun that the volume infact was decreasing but the price is going up.

what does that mean: well, it simply means that the people who purchased at around 20k just kept holding and ADOPTION went lower and lower.

Which basically means that the 50-60k levers increase was only and utterly: leveraged euphoria.

and what happens when you no longer have buyers in the market? (refer to my cig story)

the market will simply capitulate and crash.

now this is happening as we speak, the volume (buyers) are not as big and it is slightly decreasing.

which simply means:

There are no buyers in the market as much anymore as adoption is slowing, and the increase is basically leveraged euphoria.

How to avoid this:

-Understand that low volume = low adoption which simply means based on the collective psychology that people are finding it expensive to buy at that price.

-Understand that low volume does not indicate a sell off but it is confirming that a sell off will happen.

-Understand that the current price is increasing due to borrowing and leverage and not adoption which confirms the final cycle of the bull market.