how to analyze the volume of trading in order to obtain market information in cryptocurrencies *

Cryptocurrencies in the world have recorded the importance of growth over the past day, without many new users of marking the sign each day. While some people see what is with potential in this way, others perceive it. One of the key indicators that can ensure the health and direction of cryptocurrency is the IT rotation volume.

What is a trading volume?

Reference to the commercial volume to a total amonta from cryptocurrency trading in a given period. This is a suppressed number of coins or tokens lies on a specific exchange, such as Bitcoin (BTC) on the monette or ethereum (ETH) on Binance. Trade of volume is an important indicator of the market activities and can be influenced by various factors, including messages, sentiments and awards.

Do you analyze the rotation volume?

Analysis of trading volume can provide several benefits:

  • Market sentiment : A high trading volume may indicate Strang Marker, with thick pushing white celebrities.

  • price movement

    How to Analyze Trading

    : A commercial volume can help identify trends in the movement of the crypt prize. Large volume from Apapitivity can high height, while a small volume may indicate resistance or decrease.

3.

  • Price forecasts : Analysis of trading volume can also help in price movements according to patterns and identifier trends.

how to analyze the volume of rotation

To analyze the volume of trading on the market, follow the following steps:

1.

  • Examine the market : ongoing on a regular basis in market news, trends and events that can be in the size of trade.

3.

  • Identify trends : Loook for trading volume patterns, such as:

* High volume of trading around the main adventures (e.g. new letters analysis)

* Duration of turnover volume from the periods of consolidation

* Increased activity on special exchanges

  • Analyze the Volume of Trading in time : Examine this trends in relation to long changes or changes.

Tools and resources

To analyze the volume of rotation, use the following tools and resources:

  • TRING DATA Webts : COINDESK, CRYPTOSLATE AND COINGECKO PROVIDENT DATA TO PRCE, Tom and Marking Trends.

  • API Exchanges’

    : Access to historical data via Exchange in API, API Binance or the Coinbase developer portal.

  • Data visualization tools : uses such as TradingView or Etoro to visualize the volume of rotation over time.

  • Sources of Compttocurrency messages : be up to date with market messages and trends using reputable sources, such as Cindesk, Blok or CoinDesk.

Sample analysis

Suppose you are anger in the Bitcoin (BTC) volume analysis on coins in a certain period:

  • Date: March 1 – March 31

  • Commercial volume:

+ Daily average: 10,000 btc per day

+ Total volume for a month: 200,000 BTC

+ Highest daily: 15,000 BTC (March 17)

+ Lowest daily: 5000 BTC (March 15)

Based on this analysis, you can say that:

  • Strong on the market is present during this period, and the high volume of trading indicates the trust of butters in the currency.

  • Price movement suggests that this is an increase, AsseSebles actively hit bitcoins.

  • The market is moderate, with the expected degree of folburation outside the price.

Understanding Risks Trading Volatile

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