The prices of bitcoin and alts looks to be trending better this last week. However, the largest concern I still see before feeling more "bullish" is volume.
The following chart represents the logarithmic bullish trend of Bitcoin since its inception. As one can see from this chart, for the past few years, volume has been a key indicator that a reversal has occurred within the ascending logarithmic trend.
In 2017 volume began to increase culminating in the reversal volume in 2018
Then in late 2018, volume seemed to indicate a low had finally occurred until the price hit similar strong volume in May of 2019
When the Covid-19 drop hit in 2020, it was then accompanied by the highest monthly volume yet, which then ricocheted the price upward
Then finally, volume seemed to indicate a likely reversal approaching in early 2021
Now I should note that the latest "high" from volume did not necessarily indicate the all-time high nor did monthly volume represent the bounces that occurred during June/November 2021.
Additionally, monthly volume does not necessarily indicate a guaranteed "high/low" has been met (neither does weekly volume for that matter), as the highs/lows associated with volume are usually within a couple of candles of the reversal.
However, I do believe that if "reversal volume" were to occur, it would at least indicate a safer entry for anyone looking for a true break from the bearish market that exists today. Hence, although one should not necessarily expect volume as a requirement for a short-term reversal, it at least helps as an indicator for a more likely long-term reversal.
And as always, this is solely my opinion and not meant in any way as financial advice. But please like or comment if you agree or have any additional opinions.
Brilliant work! Love the volume analysis. Lets see how this plays out. Keep in touch!
AlkalineFX
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Thanks for sharing!
FALLING-CANDLES
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it hasn't reversed at all still under 22
jdaygamer
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@FALLING-CANDLES, Fibonacci is wrong calculation, very difficult to reverse at these levels and obvious
jdaygamer
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@FALLING-CANDLES, i am googling your discord without finding it, i will be up all night at study graphs and be online here, maybe we could chat on discord like old times already
Gunslinger2005
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dont think that line means much
crypto_trends
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Indeed @Gunslinger2005, the line itself is not really what I would consider any type of "indicator", however, it does demonstrate hopefully the lack of volume compared to other key reversals.