** Analysis of the quantity of cryptocurrenc
The cryptocurrency has become increasingly popular over the past decade, with many investors trying to take advantage of their growth potential. However, an indicator that can give a valuable insight into the cryptocurrency market indicators is the amount of trade. In this article we are involved in analyzing the amount of trade and discovering meaningful models in the cryptocurrencies market.
What is the amount of trade?
The amount of trade indicates that the total amount of cryptocurrency is distributed over a period of time, usually measured in the units of the unit XRP (XRP). It is a basic indicator for merchants and investors as it can help determine market trends, price movements and possible collapse or residences.
Why do you analyze the amount of trade?
Analysis of the amount of trade offers many benefits:
۱
Market mood : High trade often indicates a strong market mood where customers are more active than manufacturers.
- Price Reactions : A significant increase in trade may indicate upcoming price movement such as eruption or renaissance.
۳
Risk Management
: Sales analysis helps investors determine the level of suspension and situation by reducing potential losses.
How to analyze the amount of trade
From the analysis of the sales quantity, make a valuable insight into the following:
۱. Determine the main periods
- Look at historical data to identify deadlines with high or low sales quantities.
- Focus on main turning points such as market breaks, rejection or residents.
Diagram 2 Rows of Sales Volume
- Use a diagram of a software (such as TradingView) or online platforms (such as Cingacko) to display trading rows for different durations.
- Analyze the slope and direction of the lines to identify the models.
۳. Determine the trends **
- Find repeated trends such as:
+ Increasing trend lines
+ By reducing the recession lines
+ Bullish/Bullish-Vigari wedges
۴. Classification of trade at price
- Share the amount of trade based on price movements into categories:
+ Low quantity (LVL): Usually used for small, low -value transactions.
+ Medium volume (MV): Used for medium -sized transactions.
+ Large quantity (HV): reserved for large, high -value transactions.
۵. Evaluate the amount of trade in context
- Consider the amount of trade along with other market indicators such as:
+ Price movements
+ Market capitalization
+ Liquidity indicators (eg Bid/As AS Prevalence)
Popular cryptocurrency quantity of trade
Here are some examples of popular cryptocurrencies and their relevant commercial volume:
| Circle the amount of trade (XRP)
| — —
| Bitcoin 1.5 billion + |
| Ethereum 2.5 billion + |
| Hairdresser (XRP) 500 million – 700 million
| Litecoin (LTC) 50 million – 100 million
an example of analyzing trading quantity
Suppose you have identified the Bitcoin trading volume model:
- Historical data show that the price of cryptocurrency has increased since January.
- Analysis of commercial quantity, notices:
+ Great Spike on February 10, which coincides with a significant rise in prices.
+ Reduction of moderate quantities from February 15 to February 20th.
Based on this analysis, the conclusion may be as follows:
“Bitcoin’s price is likely to break through the $ 18,000 resistance level and continues the upward trend. The big trade volume on February 10 shows that merchants are confident in the cryptocurrency potential.”
Conclusion
Analysis of trade offers an effective tool for market views, providing valuable information on market sentiment, price movement and possible results or recovery.
