Cryptocurrency Bottom-Fishing Pitfall Guide:

Don't be foolish and buy in halfway up the hill! Is bottom-fishing happening halfway up the hill? A must-read for beginners and retail investors! Bottom-fishing sounds tempting, but in practice, many people end up trapped even deeper.

Today we'll discuss why this is the case and how to avoid pitfalls. When seeing a certain coin suddenly spike after several months of decline, many feel it's the right time to buy in, only to find that as soon as they enter, the price drops back down.

This big spike often results from market manipulation, either the price is being pumped or the cost price has been reached, or they want to acquire more cheap tokens to attract trapped investors to sell and release their positions; afterwards, the price often retraces or even falls worse, making it very easy to get trapped when chasing the rise. Additionally, manipulators may deliberately pump the price to attract those chasing gains to buy in.

So when is the real bottom-fishing opportunity? When the coin price rapidly declines, a huge trading volume appears at the bottom, and within 15 - 30 minutes, the price quickly rebounds, forming a 'pin bar'; this is usually when manipulators are buying heavily at the bottom, as retail investors are too scared to buy during a rapid decline, only manipulators will buy in large amounts.

Bottom-fishing is not just about rushing in when prices are low; one must clearly see the market. A big spike could be a trap, while a surge in volume after a rapid decline is the real opportunity. In the cryptocurrency market, risks and opportunities coexist; it is essential to remain calm and rational, using a steady strategy to cope with market changes.