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Why is it highly probable that prices can continue to rise after a volume contraction increase in volume-price relationships?

A decrease in volume represents consensus, a unified willingness to buy or sell.

An increase in price with decreased volume indicates a strong willingness from large funds to enter the market.

However, did large funds enter just to push up the price and then immediately sell? What do they gain from that?

They certainly profit from the subsequent retail investors who follow the trend and buy at higher prices, creating opportunities for retail investors to continue investing to gradually push prices higher. During this period, the large funds will also reinvest some of their funds to create a bullish atmosphere, reinforcing retail investors' determination to chase higher prices. Once the price reaches a certain level, they will gradually sell off, leaving retail investors who cannot see the trend to take over.

So, this is the essential reason why it is highly probable that prices can continue to rise after a volume contraction increase.

However, here comes the key point! The premise for prices to continue rising after a volume contraction increase is that the coin is in a new low-starting phase. If it is at the absolute end of a selling phase or at the peak of a parabolic rise, a sudden increase in price with decreased volume is more likely to be a trap for buyers.

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