Have you noticed that since the market crash on March 12, 2020, the price drop of Bitcoin (BTC) is often accompanied by an increase in trading volume, while the trading volume is relatively reduced when the price rises. What information does this phenomenon reveal?
Transactions occur based on the interaction between buyers and sellers, and the increase in trading volume reflects the differences of opinion among market participants. The increase in trading volume when the price falls means that once the price falls to a certain extent, a large number of buyers will intervene; while the decrease in trading volume when the price rises indicates that even if the price rises, not many people are willing to sell, and everyone tends to hold.
Long-term holding without selling is a typical behavior of institutional investors, which will lead to a decrease in the amount of currency available in the market, and price volatility will also decrease accordingly, gradually forming a long-term bull market trend similar to that of US stocks.
For those varieties with many retail investors, such as Tesla stocks, we can see that their prices fluctuate greatly, and the daily fluctuations may exceed 10%, and the K-line chart shows the characteristics of violent fluctuations. This kind of ups and downs are the characteristics of retail investors dominating the market and a hotbed for realizing huge profits.
Through the above analysis, I would like to suggest that after the end of this round of bull market, the opportunities to quickly double wealth in a short period of time like in 2017, 2021 and this year may no longer exist. But there is a positive news that the market's certainty has increased, which is more attractive to large-scale funds. Once these funds enter the market, they may hold for years or even decades.
As for how high prices will rise in the future, no one can predict, we can only wait and see.
If you are still optimistic about the future and believe that this industry can bring huge returns, then the bull market launched in the fourth quarter of this year may be your last chance to make "quick money". Time is running out. Once you miss it, you may have to wait another four years, or never. This is a cruel reality. After all, you have been indifferent for the past fifteen years.
If you want to seize this round of bull market, it is definitely too late to learn and sell now. It is best to have someone to take you to get started quickly.