In what scenario does buying interest typically diminish?

Buying interest typically diminishes when prices are at a peak. At this stage, market participants often experience a sense of uncertainty about the sustainability of high prices. As prices reach or exceed previous highs, many traders and investors may start to take profits by selling their holdings, sensing that a correction or pullback could be imminent. This profit-taking behavior can create a situation where buying interest wanes, as the fear of losing profit or the anticipation of a market correction increases.

In contrast, during the accumulation phase, buying interest usually increases as investors seek to acquire assets at lower prices before a potential upward move. Following positive market news, buying interest can also rise as optimism about the asset's future performance tends to drive demand. Additionally, during bullish key reversal days, buying interest may strengthen as traders interpret these price movements as signals of a shift towards a bullish trend.