Take a look at this graph.
Starting from the left it is possible to retrace the various phases of the history of Bitcoin:
The first months of the launch are characterized by a rapid increase in price but supported by very low volumes.
This is called CONSOLIDATION.
Then, consolidation become SPECULATION with price too much higher and people start sell, generating more volumes.
Subsequently we can see a long adjustment phase characterized by small price variations, but supported by trading volumes.
This means that people began to trade Bitcoins at a fixed price, categorically refusing to sell them off or buy them at crazy prices.
However, in 2021 the price suddenly soared due to a new wave of SPECULATION, not supported by volumes.
This means that people jumped on the "news" by buying and selling it at crazy prices, drawing very high candles on the chart.
In 2022 we can witness the "collapse" of Bitcoin, where people rush to buy it or get rid of it, generating very high trading volumes but with a relatively small change in price.
This means that people have realized that Bitcoin has value, but they want to quickly recover the losses they have suffered or they want to hurry up and board the ship that is leaving.
Finally we can witness a short phase characterized by very low trading volumes, similar to those of 2018, but at a stable price again.
This means that people have finally agreed on the price, and now those long 2022 candles are compressed into a few pixels on the chart.
People have also stopped buying and selling without thinking driven by the desire to get rich quickly and without effort.
Now, however, in the last candle that begin this new phase of Bitcoin, it is possible to notice a new phenomenon that has never happened before: a significant price increase linked to a decline in trading volumes.
This means that people have recognized the value of Bitcoin as an investment and do not want to get rid of it for any reason.
$BTC
