Question #147 ·
How do declining trading volumes and narrow price ranges suggest Bitcoin is consolidating?
- They indicate reduced volatility and accumulation before a potential breakout. Right answer
- They predict an immediate breakout above resistance without consolidation signals.
- They suggest increasing volatility and price spikes across the market.
Why is this the correct answer?
This is correct because narrowing price ranges and falling volumes typically show market consolidation as traders accumulate positions ahead of possible price moves.