1. Rapid rise, slow fall, hidden nuances of accumulation.
After a rapid price increase, if the correction process is soft and limited, it often means that a major player is quietly accumulating assets. Such dynamics can filter out some short-term speculators and complete the concentration of assets without drawing unnecessary attention, laying the foundation for further growth.
2. Rapid fall, slow rise, caution with sales.
When the price experiences a significant drop and then shows a slow increase, it may mean that a major player is conducting sell operations. Such, at first glance, stable dynamics can be used by speculators to attract small investors, while the major player gradually sells their assets in the shadows, and the market is likely to enter a stage of decline.
3. Increased volume at the top or continuation, decreased volume at the top - definitely exit.
When the price is at the top, if trading volume increases, it indicates that buyer strength is still strong, and the market may continue to rise; but if volume at the top consistently decreases, it indicates an insufficiency of strength to raise prices, at this point, one should exit quickly.
4. Increased volume at the bottom requires observation; prolonged volume increase presents an opportunity for entry.
A sudden increase in volume in the market at the bottom does not always mean that the market will soon turn away; it may just be a short-term capital movement or a bounce during a decline that requires further observation. When volume at the bottom continues to increase and the price no longer falls, it indicates a steady inflow of capital, at which point the possibility of entering can be considered.
5. Trading cryptocurrency is actually trading emotions; consensus is manifested in trading volume.
Price fluctuations in cryptocurrencies often depend on market emotions; when investor emotions are high, demand increases, and the price easily rises; when emotions are low, supply increases, and the price may fall. The degree of consensus in the market will be directly reflected in trading volume; the larger the volume, the stronger the market consensus regarding the current price.
6. 'Nothing' is the source of the cryptocurrency world.
In the world of cryptocurrency, there are no immutable rules; none of the so-called laws can maintain their power in a changing market environment. By keeping the attitude of 'nothing' and not anchoring to experiences, one can better adapt to the rapidly changing world of cryptocurrencies.