1. Rapid increases and slow decreases are signs of accumulation. A quick rise followed by a slow drop indicates that the market makers are accumulating shares, preparing for the next round of increases.
2. Rapid decreases and slow increases are signs of distribution. A quick drop followed by a slow rise means that market makers are gradually selling off, and the market is about to enter a downtrend.
3. Don’t sell when there is high volume at the top; run when there is no volume at the top. High trading volume at the peak may indicate further increases; however, if the trading volume at the top shrinks, it signifies insufficient upward momentum, so exit quickly.
4. Don’t buy with high volume at the bottom; continuous high volume can be a buying opportunity. High volume at the bottom may indicate a continuation of the downtrend, which requires observation; continuous high volume indicates that funds are continuously entering, which could be a buying opportunity.
5. Trading cryptocurrencies is about trading emotions; consensus is reflected in trading volume. Market emotions determine price fluctuations, and trading volume reflects market consensus and investor behavior! $BTC