Even beginners in the cryptocurrency market can understand! Here are 4 tricks to help you spot the small actions of the big players and seize opportunities securely!
The cryptocurrency market is like a magic show in a bustling city; the big players are the skilled magicians, and if you're not careful, your money can disappear. Today, I'll share a few tips on how to see through the big players' tricks so you won't be fooled by them again!
1. After a sharp rise, a slow decline indicates that the big players are 'quietly stocking up.'
If you see a certain coin suddenly skyrocketing like it's on steroids and then slowly falling like a deflated balloon, it's likely that the big players are 'stocking up.' The big players first pull the price up sharply, making everyone think they've struck gold and rush to follow suit. Once the price goes up, they gradually lower the price to wash out those eager to sell retail investors. If the trading volume also increases at this time, you need to be alert; the big players may be preparing for their next big move, so keep an eye out and wait for the opportunity to act.
2. A sudden drop followed by a slow rebound indicates that the big players are 'dumping goods.'
Conversely, if the cryptocurrency price drops suddenly like a cliff and then slowly rebounds a bit, it's likely that the big players are 'dumping goods.' They deliberately push the price down to scare off the small retail investors, making them sell quickly. When the retail investors sell, the big players take the opportunity to sell their excess coins. If you see this trend, quickly check if you have such coins; if you do, don't hesitate, quickly take profits or cut losses, and don't wait for the big players to sell off their goods and trap you at a high position.
3. The 'lifeline' of trading volume at the top.
The trading volume at the top is particularly critical; it is the 'lifeline' for escaping the peak.
• Massive volume at the peak: If you see the trading volume at the top suddenly become particularly large, it indicates that the big players and retail investors are fiercely battling. Although there may be another price increase, the risks are also particularly high. At this time, don't be greedy; quickly sell in batches and secure your profits.
• Divergence between volume and price: If the trading volume suddenly decreases at the peak but the price is still rising, be careful, as this indicates that the big players no longer have the strength to push it higher. Quickly liquidate your positions; don't wait to get trapped at the peak.
4. The emotional code behind trading volume.
Why do cryptocurrency prices rise and fall? In short, it's all about people's emotions, and trading volume is the 'barometer' of those emotions.
• Volume and price rising together: Everyone is in high spirits and optimistic about this coin, and the big players are also leading the price upward; at this time, you can consider following the trend, but don't chase the high price.
• Shrinking volume with falling price: If everyone is pessimistic and waiting on the sidelines, don't act rashly; wait for the market to clarify before taking action.
• Divergence between volume and price: This is a dangerous signal; the big players may be operating in the opposite direction, so quickly adjust your strategy and don't stubbornly hold on.
Let's talk about Bitcoin (BTC).
Bitcoin is a thing, the barometer of the cryptocurrency market, everyone is watching it every day. If you see Bitcoin rising quickly and then slowly falling, the big players might be accumulating, so you need to pay attention to the trading volume; if Bitcoin suddenly drops badly and then slowly rebounds, the big players might be unloading, so you should run away quickly.
In the cryptocurrency market, the big players have deep tricks, but as long as you master these 4 skills, even beginners can become experts and securely seize opportunities to make money!