medium · Volume Spread Analysis wyckoff-phases-schematics
A cryptocurrency shows an ultra-high volume down-bar that closes in the middle after a 20% decline. The funding rate is extremely negative. The next bar is an up-bar.
What does this combination suggest?
- This is a 'Selling Climax' amplified by short liquidations; professionals are buying into the crowded short side.
- The negative funding rate shows the crowd is uniformly selling, so the downtrend logically must continue lower from here.
- This is 'Falling Pressure' and it marks the start of a grinding, multi-month bear market for the asset.
- The mid-range close on this bar is simply a sign of weak, indecisive 'No Demand' from the remaining buyers.
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