One, sharp rise and slow decline: the 'gentle wash' signal of big players.
When the price suddenly surges and then slowly recedes without a rush to sell, this is not a peak; it is the main force 'boiling the frog in warm water' to wash the market. They deliberately create the illusion of 'not moving up' to force retail investors to hand over their chips, building momentum for the next surge. What is most feared is a direct crash after a big bullish candle — that is a typical 'trap market', where the main force raises the price to sell off and then leaves, leaving retail investors standing guard.
Two, sharp drop and slow rise: the 'smoke bomb' of capital withdrawal.
After a sudden crash, if the price slowly creeps up, don't think it's 'stabilizing at the bottom'. This is the residual warmth after the main force has sold off, like burnt-out charcoal; it may look like there are still sparks, but it is actually slowly extinguishing. Don't be fooled by the thought 'it has dropped so much it should rebound now'; the bottom in the cryptocurrency market is never determined by 'how much it has dropped', but by the 'indifference' after capital has completely withdrawn.
Three, high-volume at high levels: the 'death sentence' of price fluctuations.
If the price continues to rise while volume is increasing, it is actually a good sign — it indicates that there is still capital willing to take over, and the market may continue to surge; but if it reaches a high point with low volume, that is truly dangerous. A rise that no one dares to chase is like a water source without origin, which could stop flowing and crash at any time. Volume is the 'popularity indicator' of the market; low popularity at high levels means a crash is not far away.
Four, volume increase at the bottom: true initiation or 'fishing bait'?
Volume increase over one or two days at the bottom is meaningless; it may be 'bait' deliberately released by the main force to trick retail investors into entering the market. A true bottom start must be characterized by 'continuous volume increase' — ideally, after several months of low-volume fluctuations, suddenly followed by three or more consecutive days of volume increase, which is the signal for real money entering the market. Remember: retail investors cannot gather the funds for continuous volume increase; only the main force can initiate such a 'sustained trend'.
Five, the essence of market observation: understanding the 'emotion thermometer'.
Newbies focus on price, experienced traders look at volume, and experts read emotions. K-line is the result of capital game, while trading volume is the 'thermometer' of market consensus. When prices drop but volume shrinks, it indicates that selling pressure is quickly exhausting; when prices rise but volume does not keep up, it indicates that emotions are being overdrawn. Understanding emotions is more effective in grasping trends than focusing on K-line fluctuations.
Six, the wisdom of 'holding cash': the highest level in the cryptocurrency market.
Those who can hold cash are the real experts. Holding cash is not 'doing nothing', but maintaining restraint when there are no opportunities — not blindly entering the market to buy, not feeling anxious just because 'everyone else is making money'; resisting the temptation of rising prices, not chasing high prices; enduring the pain of falling prices, not cutting losses before dawn. This kind of 'anti-human' restraint is the confidence to survive through bull and bear markets.
In the past seven years, I have seen too many people make money by luck, only to lose it back through strength in the end. The opportunities in the cryptocurrency market are always there, but those who can seize them are always the ones who understand the survival rules and can control themselves. This set of 'basic strategies' may not be flashy, but it can help you survive in a crazy market — as long as you're alive, you'll have the chance to wait for your own million-dollar market.
