In the cryptocurrency world for many years, I have summarized the signals to judge the movements of major players, making it easy for beginners to understand!
In the ever-changing crypto landscape, understanding the signals of major players is the key to profitability! Master these 4 core patterns to easily identify market traps and seize trading opportunities!👇
1. Rapid Rise + Slow Drop — Major Player Accumulation Signal
When a cryptocurrency experiences a short-term surge followed by a slow decline, it indicates that major players are quietly accumulating! By quickly driving up prices to create short-term gains that attract attention, followed by a slow drop to wash out retail investors; if trading volume simultaneously increases, it’s time to pay close attention and wait for the right moment to act.
2. Rapid Drop + Slow Recovery — Major Player Selling Warning
If the price of a cryptocurrency plummets sharply and then slowly rebounds, it is highly likely that major players are selling off their positions. They create panic through rapid declines, and as retail investors sell off, they slowly recover their stakes; once this pattern emerges, it is advisable to take profits or stop losses in a timely manner to avoid subsequent risks.
3. Volume Secrets at the Top — Escape the Peak Survival Rule
① Huge Volume at the Top: A large trading volume at the top indicates fierce competition between buyers and sellers. Although there may be a chance for a second surge, the risks are extremely high, so it is recommended to reduce positions in batches.
② Divergence between Volume and Price: A sharp decrease in trading volume at the top indicates a depletion of upward momentum, at which point one should decisively liquidate positions to avoid being trapped at high levels.
4. The Emotional Code Behind Trading Volume
The rise and fall of cryptocurrency prices fundamentally represent a battle of market emotions, with trading volume being a direct reflection of that emotion:
① Volume and Price Rise Together: Market sentiment is high, with bulls in control.
② Volume Shrinks While Price Falls: Market sentiment is pessimistic, with a strong wait-and-see attitude.
③ Divergence between Volume and Price: Be wary of trend reversals and adjust strategies in a timely manner.
