BTC - daily
On-Balance Volume (OBV) is a tool used in trading to understand the relationship between price movements and trading volume. It helps traders confirm trends: when prices go up and OBV goes up, it shows buying pressure; when prices go down and OBV goes down, it shows selling pressure. OBV can also predict potential reversals in price trends. If the price is going up but OBV is going down, it might indicate the trend is losing strength. Conversely, if the price is going down but OBV is going up, it could signal a potential price increase. OBV is valuable because it adds another layer of information beyond just looking at prices, helping traders make more informed decisions. Importantly, while big money can manipulate price, they cannot manipulate volume, making OBV a useful indicator of genuine market sentiment.