What can trading volume tell us about Bitcoin’s market activity?
Why is this the correct answer?
This is correct because trading volume measures how much Bitcoin changes hands over a period. High volume reflects active trading and easy entry or exit from positions, meaning greater liquidity and often heightened interest. When rallies occur with relatively low volume, it often signals that fewer sellers are willing to part with Bitcoin and that buyers are steadily accumulating rather than speculating heavily, which beginners can watch to gauge market behavior.
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