Bitcoin / TetherUS
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BTC supply and demand or just liquidating ordinary people

Is the price of cryptocurrencies still controlled by supply and demand, or are exchange offices just generating money by liquidating ordinary people who believe in cryptocurrencies?

After a significant increase in volume in the previous weeks, Bitcoin's price continued to rise even as the volume dropped by 20%. This situation could potentially indicate an artificial increase in the cryptocurrency's value.

It's not uncommon for changes in trading volume to impact the price of cryptocurrencies. A sudden surge in trading activity, indicated by high volume, can lead to price movements as traders and investors react to new information or market sentiment. However, if the price continues to rise despite a decline in trading volume, it might raise questions about the sustainability and authenticity of the price increase.

A scenario where the price rises while trading volume decreases could indeed suggest the possibility of manipulation or speculative activity. Traders with large positions might be engaging in tactics to create a false sense of demand or interest, driving up the price without a corresponding increase in genuine market activity.

Investors and analysts often consider both price and volume trends to assess the overall health and legitimacy of price movements. Unusually disconnected patterns between price and volume can be a signal for caution, prompting further investigation into market dynamics and potential manipulation.
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