Question #197 ·
How do changes in Bitcoin’s trading volume help beginners understand shifts in market momentum?
- They directly predict future Bitcoin prices with complete accuracy every time.
- They indicate shifts in buying or selling pressure showing momentum changes. Right answer
- They measure blockchain transaction speed confirming how fast transactions finalize usually.
Why is this the correct answer?
This is correct because trading volume measures how many coins are bought or sold over a period. When volume increases along with price, it often confirms strong buying momentum. When volume falls, it can mean fewer participants and potential consolidation or weaker momentum, which beginners should watch to gauge market sentiment.