Today I will only talk about one thing that can help you survive in the crypto world—MACD divergence.
This is my life-saving trick after three liquidations and losing 8 million, clawing my way out of the graveyard.
Remember when BTC surged to 69k in 2021? I had a full leveraged long position, with unrealized gains of 4 million.
The group was filled with shouts, 'It's about to break 100k!'
But I was staring at the MACD and noticed the red bars getting shorter—prices were hitting new highs, but the energy bars were halved.
At three in the morning, recalling the lessons from ETH three years ago, I grit my teeth and liquidated my position.
The next day, BTC plummeted 58%, and the wails of those who got liquidated that night are still deafening.
—This is a top divergence, the whales had already indicated through the energy bars that 'it’s time to run.'
In 2023, LUNA went to zero amid a sea of curses, but I spotted something in the weekly chart: new price lows, yet the green bars were 60% shorter than before.
This is a bottom divergence; it can't drop any further, and the whales are secretly accumulating.
The on-chain whale 0x5f3 has been consuming 20 million UST daily for three consecutive weeks; I set up my positions in three batches.
A year later, the RWA concept exploded, returning 3 million.
Remember:
Top divergence = new price high + shorter energy bars.
Bottom divergence = new price low + shorter energy bars.
Last year when DOGE surged to 0.35, I saw that the bars were only 30% of the previous high, I decisively liquidated and avoided a 70% drop.
Many people jump in at a golden cross; that's a death sentence.
The real opportunity lies in the 'second golden cross':
30-minute line + 4-hour line both golden cross, on-chain capital inflow triples.
For example, when SOL broke 100 dollars, I waited for the 4-hour second golden cross, volume surged 5 times, and I increased my position by 30%, doubling it in 15 days.
Ten years of blood and iron rules:
Three-cycle resonance: 30-minute defines direction, 4-hour assesses strength, daily locks in trends.
Top divergence + net outflow from whales > 5 million, cut directly.
Bottom divergence + contract long-short ratio below 0.7, then take action.
The year I got liquidated, I filled my room with K-line charts, crying every day while reviewing divergence cases.
Even today, I can feel the changes in the energy bars with my eyes closed.
This is muscle memory bought with 8 million.
Remember: MACD is the mirror of the whales. Understanding the expansion and contraction of energy bars reveals whether they are accumulating or distributing.
