Price fluctuations flicker constantly, but what truly determines the trend is trading volume.

After years in the crypto world, my understanding has deepened: without understanding the relationship between volume and price, all technical analysis is just empty effort. Those myriad indicators? Ultimately, they all boil down to volume and price.

An upward move in the market must be supported by trading volume—that's an ironclad rule. Price increases without follow-up volume are like driving a car with no fuel; you won't get very far. Often, such volume-less surges end up becoming a nightmare for bulls—don't expect to come out unscathed.

**The Essence of the Volume-Price Relationship**

To put it simply: price is the market's answer, and volume is the force driving that answer. Think of price as the steering wheel of a car, and volume as the accelerator—more volume equals pressing the gas pedal, less volume means lifting your foot.

Price rising with volume? That’s a healthy increase, indicating genuine money entering the market. Price falling with light trading is mostly just profit-taking, not panic. Be cautious of signals where volume increases at key levels but price can't move up—that likely indicates big funds quietly offloading.

**Current Market Signals**

Look at the recent trend: Bitcoin has stabilized around $95,000, but trading volume over the past 24 hours has decreased by 13%. This pattern of shrinking volume suggests the market is holding back, waiting for a clear direction.

Meanwhile, Ethereum is performing well, staying around $3,300. The logic is straightforward—when Bitcoin's influence is too dominant, smart money shifts to more flexible assets. This is a practical application of the volume-price relationship in capital rotation.

Whether a breakout can hold depends mainly on whether volume confirms it. Breakouts without volume backing are mostly false signals.