Five Key Laws of Cryptocurrency Trading

Law One: Rapid Rise and Slow Fall Indicate Accumulation

When the price rises sharply and falls slowly, the market maker is accumulating for future price increases.

Law Two: Rapid Fall and Slow Rise Indicate Distribution

When the price falls quickly and rises slowly, the market maker is distributing, and the market will enter a downtrend.

Law Three: Volume at the Top Indicates Caution

When volume is high at the top, the price may still have momentum, so there is no need to sell quickly; if there is no volume, it indicates the loss of momentum, and it is advisable to exit quickly to avoid risk.

Law Four: Volume at the Bottom Indicates Caution

If there is only volume at the bottom, it may indicate a pause in the downtrend, so buying is not advisable; if there is sustained volume, it indicates capital inflow, and entering the market can be considered.

Law Five: Trading Cryptocurrency is Trading Emotions

Trading cryptocurrency involves trading market sentiment; trading volume reflects market consensus and investor behavior patterns, which dominate price fluctuations.