Sentiment indicators
we will explore how the level of trading activity can act as an indicator of market mood and have an impact on your trading plans
Bearish and bullish sentiment- A significant shift in volume may suggest the market's attitude towards a cryptocurrency. For example, an increase in trading volume while Bitcoin is rising may indicate a positive trend.
Accumulation and distribution- Professional traders frequently take advantage of periods with high trading volume to build up or sell off large positions. Monitoring volume can provide indications of potential strategies being considered by institutional traders.