Hello everyone, I am Banker Fuqi. Today I want to discuss the underlying logic of survival in the crypto world using the most down-to-earth language — rules are more important than intelligence. I have seen too many people make quick money by luck, only to lose it all by strength; I have also seen someone take six or seven years to turn 'bloody lessons' into six life-saving iron rules, and instead became a 'old fox' in the market.
1. After a big surge, is there a decline? Don't panic, but 'the guillotine' must run!
When a coin surges and then starts to slowly drop, like a dull knife cutting meat — don't be afraid, it may be a big player 'washing the盘', wanting to drive away impatient retail investors. But if it suddenly crashes straight down without any rebound (the guillotine), then it is definitely the main force luring you into a trap!
Banker’s viewpoint:
This 'guillotine' is the most vicious trap in the crypto world, without exception. I once saw a new retail investor who didn't run after a certain altcoin surged 300%, only to experience a 60% drop the day the guillotine appeared, followed by another 40% drop the next day, leading to complete liquidation and heavy debts.
Case Study:
In May 2021, Dogecoin (DOGE) surged after Musk promoted it, but then a guillotine market appeared; countless people bought at high levels and are still stuck. Remember: when the guillotine appears, don’t hesitate, run!
2. Is the rebound after a crash weak? Don't catch it! The true bottom features 'volume contraction and flatness + gentle volume expansion'!
After a sharp price drop, a rebound occurs, but the trading volume is as weak as if it hasn't eaten — this is the main force acting, trying to attract you to take the bait! The true bottom is when the market is utterly desperate (volume shrinks to the floor), then the volume quietly expands, and the price steadily rises.
Banker’s viewpoint:
Buying the dip is the easiest operation to lose money in the crypto world, without exception. Many people rush in when they see a rebound, only to get stuck halfway up the mountain. The true bottom features: volume contraction and flatness + gentle volume expansion, with prices slowly climbing.
Case Study:
In November 2022, after Bitcoin dropped to $15,480, the market fell silent, and trading volume shrank to an extremely low level. Then the trading volume gently expanded, and the price steadily rose; this was the true bottom. All those previous rebounds were traps to lure buyers.
3. New highs + exploded trading volume? Don't rush to sell! But 'high-level no volume' must run!
When the price makes new highs and the trading volume also expands — it indicates that large funds are still entering, and the market may continue. But if the price is absurdly high while the trading volume keeps shrinking (high-level no volume) — this is a sign that the main force has finished selling, and a crash is imminent!
High-level no volume is one of the most dangerous signals in the crypto world. I have seen too many people get stuck at the peak because they were greedy for the last bit of profit. Remember: high-level no volume, retreat immediately!
Case Study:
In April 2021, after Bitcoin surged to $64,000, the trading volume began to shrink, followed by a crash. Those who didn't run suffered heavy losses. In October 2023, when Bitcoin broke through $35,000, the trading volume continued to expand, and the market continued to rise.
4. A sudden massive bullish candle after a sharp drop? Don't get excited! It may be a trap to lure you in!
When the price of a coin drops to despair, and suddenly a large bullish candle appears with huge volume — don't celebrate too early! This could be a 'false bottom' drawn by the main force to trick you into taking the bait. The true bottom is when the market is utterly desperate (volume contracts and flattens), then the volume quietly expands, and the price steadily rises.
Banker’s viewpoint:
This kind of 'dry land bamboo shoot' rebound is 80% likely to be a trap. I have seen too many people get stuck halfway up the mountain because they were greedy for cheap prices. The true bottom features: volume contraction and flatness + gentle volume expansion, with prices slowly climbing.
Case Study:
In June 2022, after the LUNA crash, there was panic in the market. Suddenly one day, LUNA surged 300% with huge volume — but the next day, it crashed 90%, leaving countless people with nothing.
5. The relationship between volume and price is crucial! Divergence is an early warning signal!
The candlestick chart shows the 'appearance' of prices, while trading volume represents the 'emotion' of the market. Top divergence (price makes new highs, volume shrinks) — it will drop! Bottom divergence (price makes new lows, volume expands) — it will rise!
Banker’s viewpoint:
Volume-price divergence is the most practical early warning tool in the crypto world. I have avoided countless crashes with this signal and caught several major surges. Remember: sell at top divergence, buy at bottom divergence!
Case Study:
In August 2023, Ethereum's price made a new high, but the trading volume shrank (top divergence) — followed by a 20% crash. In December 2023, Ethereum's price made a new low, but the trading volume expanded (bottom divergence) — followed by a 50% surge.
6. The highest realm of trading is 'no self' — only recognize the rules, not emotions!
In the crypto world, don't trust 'I think' or 'I feel', only trust the rules! Let go of obsession (don't hold positions when there's no opportunity), tame greed (stay calm when others are celebrating), and tame fear (buy the dip when others are panicking).
Banker’s viewpoint:
The market rewards only 'discipline machines', not 'smart people'. I have seen too many 'trading geniuses' make money by luck, only to lose it all by strength in the end. Those who survive are the ones who engrave the rules into their bones.
Case Study:
In the 2021 bull market, a friend became rich through leverage but refused to cut losses in the bear market, ultimately accumulating heavy debts. Another friend strictly set stop losses, made five times in the bull market, lost only 20% in the bear market, and is still alive in the market today.
The storms in the crypto world are always changing, but the rules are eternal and unchanging! Follow Banker Fuqi, and I will break down market signals in the fan group, helping you find a bit of scarce certainty in this chaotic storm! #名人MEME热潮
Remember: in the crypto world, living long is more important than making quick money! I am Fuqi, follow me, with top-tier team support, only serving ambitious lunatics! $ETH
