Rocket-like rise, leisurely fall
This is often when the big players are quietly accumulating. The price of the coin shoots up suddenly, and then leisurely comes back down; this indicates that the big players are preparing for the next big rise, quietly gathering chips.
Diving-style drop, snail-like recovery
This is something to be cautious about, as it could likely mean that the big players are quietly offloading. The price of the coin suddenly plummets, and then slowly crawls back up like a snail; this indicates that the big players may be slowly retreating, and the market may be entering a downtrend.
Many people at the peak vs. few people at the peak
When you reach the peak, if you see a large trading volume, don't rush to run away, because this might not be the peak yet; the price may continue to surge. But if the trading volume shrinks, then you should quickly retreat, as this indicates that the upward momentum is running out.
Many people at the foot of the mountain vs. many sustainers
At the foot of the mountain, if a sudden group of people arrives (purely an increase in volume), it may just be a small rest on the way down, so don't rush to board. Only when you see a continuous stream of people arriving (sustained increase in volume) does it indicate that capital is continuously flowing in; at this time, you can consider getting on board.
Market sentiment and the level of trading activity
In cryptocurrency trading, what you're really trading is everyone's mood. When everyone is in agreement (market consensus), it reflects in the level of trading activity (trading volume). As moods fluctuate, the coin price also goes up and down. The size of the trading volume is a true reflection of everyone's thoughts.
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