Importance of volume in bitcoin technical analysis.

[Jubilee58]

Volume is very important when it comes to analysing the price movement of bitcoin, as it tells you the amount of bitcoin being traded within an interval of time, and also shows you the total value and number of transaction within a specific period of time.

Volume also help bitcoin traders to be able to analyse market sentiment, financial inflow and the bitcoin price movement.

Volume helps Bitcoin traders to be able to analyse trends such as:

When the price of bitcoin increases with increasing volume, this shows there is a serious buying pressure, and which can cause bitcoin uptrend.

And when there is a rising price of bitcoin and decreasing volume, this is an evidence of poor buying pressure which can cause bitcoin market reversal.

When price and volume are not moving in the same direction, this can equally cause bitcoin market reversal.

[Sammye3]

This is an important factor in price analysis and speculations for the future too as you mentioned in your post OP, it's a tool used in determining the strength of the market, liquidity and trend changes. Over time it shows the actual price movement and help to avoid a fake out.

The principle of volume analysis during trades is very important for both newbies and OG's as it's one of the basic fundamentals for price analysis.

[WhoYouCantKill]

Well said, volume is the key for understanding the market strength and sentiment of Bitcoin. This confirms how valid the price moves of Bitcoin is: rising prices having high volume reveals firm buying momentum, then rising prices with low volume is a warning for weakness or any possible reversal.
Conclusively, volume assist traders to separate real trends from false moves.

[Karl_3000]

And when there is a rising price of bitcoin and decreasing volume, this is an evidence of poor buying pressure which can cause bitcoin market reversal.

When price and volume are not moving in the same direction, this can equally cause bitcoin market reversal.

These are true but that should be for traders because long term holders may not care about the volume at all but they will prefer to just hold.

Traders will learn about volume and other indicators but we are still going to hear about liquidations.