Brothers, today I want to talk about something that can help you survive in the crypto world: 'MACD Divergence'
This is the lifesaving trick I discovered after three liquidations and losing over a million.
When BTC surged to 69,000 in 2021, I was fully leveraged with long positions and had an unrealized profit of 4 million. Everyone in the group was shouting 'Break 100,000', but I noticed that the MACD red energy bars were getting shorter and shorter — the price was at a new high, but the bars were half as short. At 3 AM, I recalled the lesson from three years ago with ETH, gritted my teeth and liquidated. The next day, BTC plummeted 58%, and the cries of those who were liquidated are still haunting to think about.
This is known as a top divergence: when the market is being pumped, the energy bars will signal 'it's time to run', yet most people are blinded by greed.
When LUNA went to zero in 2023, the market was cursing 'Ponzi coins', but I saw the trick on the weekly chart: the price was at a new low, but the green energy bars were 60% shorter than the last drop — this is a bottom divergence, meaning it can’t drop anymore, and the market makers are quietly accumulating. On-chain data showed that the giant whale 0x5f3 was eating 20 million UST every day for three weeks straight. I built my position in three batches, weathered the panic, and the next year, when the RWA concept took off, I made back 3 million.
Remember: a top divergence is 'new price high + shrinking energy bars', and a bottom divergence is 'new price low + shrinking energy bars'. Last year when DOGE surged to 0.35, I saw the energy bars shrink to 30% of the previous high, decisively liquidating my position and avoiding a 70% crash.
Many people rush in at a golden cross, which is a path to being slaughtered. When PEPE had its first daily golden cross in 2024, OKEx’s hot wallet moved 20 million USDT in and out, a typical test, and three days later it dropped 20%. The real opportunity lies in a second golden cross: when both the 30-minute and 4-hour MACD cross upwards, with large on-chain transfers exceeding the 24-hour average by three times. Last year when SOL broke 100 dollars, I waited for the 4-hour second golden cross, and the trading volume exploded to five times the usual, adding 30% to my position, and doubling my investment in 15 days.
Eight years of bloody ironclad rules: three-cycle resonance (30-minute determines direction, 4-hour checks strength, daily locks trend); top divergence + net outflow of whales exceeding 5 million, cut directly; for bottom divergence, only act when the contract long-short ratio is below 0.7.
MACD is the mirror of market makers. Understand the expansion and contraction of energy bars, and you’ll know whether they are accumulating or distributing.
It’s not that you aren’t moving fast enough; it’s that you’re stumbling around in the dark alone. Brother Jie has always been there; the light is right ahead. If you don’t keep up, you’ll be stuck in the night forever.