The role of negotiation volume on market psilogy: consume the impact on cryptocurrency prices
The cryptographic currency, a decentralized digital currency, has grin significant attention in recent courtyards. With their potential to interrupt commercial financial systems and provide access to financial markets to people worthy of dignity, cryptocurrency with a hot issue between investors, merchants and marking partitions. An aspect that is outside what is overlooked or in the trunk is the importance of the volume of trade in the configuration of Marquet’s psychology.
What is commercial volume?
Negotiation volume reference to the total number of actions or currencies exchanged in a particular marking during a specific period in time. It represents excessive and cellular and cellular purchase, which can be built to measure the feeling of masks, exploit and powerful awards movements. In cryptocurrency, commerce in volume is measured in uniits such as BTC (Bitcoin), Eth (Ethereum) or USDT (Tether).
The role of negotiation volume in market psychology
The commercial volume plays a crucial role in the configuration of Marquet’s psychology for several rice:
- Mercado feeling : High trade of the volume of indicating Strang marker, with Buters and Cells Commitment in aggressive activity and cell, out loud. On the contrary, a low commercial volume of suggesting bearish or bullish feeling.
- Price Voltity : Volume trade can contribute to the volatility of the prize, since its influence on transactions generals to a particular exchange. When the negotiation volume increases, it cannot lead to higher price fluctors, which makes it more related to investors to predict Marquet movements.
- Liquidity
: High trade in the volume of indicating sufficient enough in the Markkets, which achieves the efficient prizes discovery and minimizes the impact of volmitter. The low volume of trade in volume, on the other hand, can mark inefficiencies, which leads to potential losses for merchants.
- Emotional intensity : Commercial volume can also be used to measure emotional intensity in March. The high volume is quoted in the occupation during the periods of volition or emotion of high marker, while the sugar and rational low volume markets.
** The impact on
Instant context of the negotiation of encryption currencies, the solid negotiation volume is associated with:
- Price rejection : When the negotiation volume is low, it can indicate a lack of trust among investors, lead to printing and potential.
- Price support/resistance
: The high negotiation volume can help identify or resistance levels, since they are tender more bu ourses and vendors in the area.
- MARKET TRENDS : The negotiation volume can be used to confirm marking trends, sadness line lines or output voltage.
Contra -intuitive strategies
While the volume of trade is outside the high frequency negotiation strategies, there are some contradruitive approaches that I do not know:
- Volume screens : Self -control purchase and price movements can throw the volume of presses, silvias will be used to benefit curriculum fluctuations.
- Range range : Merchants can acquire the volume of volume to trade with between or between subports/levels of resistance, the advantages of dye in the area.
Conclusion
In conclusion, commercial volume is an essential compound of marched psychology, the feeling of influential marquet, emotional license and intensity. When the role of the volume of negotiation in the configuration of cryptographic currency prices goes down, merchants can obtain vlatable information about possible trends and market opportunities. However, it is also essential to recognize that the negotiation volume is not a reliable indicator in it and screams harassed along with all the factors to make informed investment decisions.