As an investor in the stock or cryptocurrency market, it is wise to determine the risk you take based on the underlying risk in the market. If risk in the market is high, then it’s advisable to reduce the risk you take in your investment accounts.

With that in mind, we take a deep dive into the uptrend in the cryptocurrency market. Bitcoin is our market proxy, and we analyze the uptrend for strength and/or weakness. Should we buy this move higher on weakness or sell on strength?

The current uptrend began with a breakout in Bitcoin at major support at the $30,000 level. One of the most important technical tools in analyzing the strength of any move in this space is volume. Volume is the fuel that propels an asset higher. If a breakout and the following advance occurs on weak volume, it should be looked at with caution.

Here is a daily chart of Bitcoin. We have put a blue box around the volume that occurred on the breakout and the following advance. ou can see an increase in volume on the initial breakout, but not much after that.

For a more detailed analysis, please click on the link below:

https://player.vimeo.com/video/632205548?h=d79d25b4dd"