The cryptocurrency market, like the stock market, has a classic move before a bull stock explodes: a volume contraction.
The stock price will repeatedly approach the previous resistance level, but it just won't break through, lingering there for a few weeks or even longer. During this time, the trading volume becomes smaller and smaller – don’t rush, this is not weakness; it’s the main force quietly accumulating shares, washing out those who lack patience.
The most crucial move comes: one day, suddenly a big bullish candle appears with a surge in trading volume, breaking through the resistance level in one go; that is the real starting signal. If it stabilizes after the breakout without falling back, it indicates a trend reversal, and the subsequent space is often quite large.
Remember: don’t rush to chase; wait for it to signal itself. Volume contraction is to jump higher.
