The fluctuations in cryptocurrency prices are not just a matter of luck; there are people behind the scenes making careful calculations.
If you want to compete with those cunning market makers, you need to pay attention to every little movement in the market.
For example, if the price of the cryptocurrency skyrockets but falls slowly, it’s likely that the market makers are secretly positioning themselves.
They deliberately let the price drop slowly to make impatient retail investors sell their chips, allowing them to pick up bargains. At this moment, don't rush; stay calm and observe how the price and trading volume are changing; the next wave of a big surge might be coming.
Conversely, if the price suddenly plummets like it's falling off a cliff but rises back slowly like a snail, you need to be cautious. This could mean that the market makers are secretly unloading at high levels, and by the time you notice something is amiss, a bear market may have already begun. So don’t be fooled by that slow increase; know when to pull back.
If the price is already high but the trading volume keeps increasing, don’t be too quick to sell. This indicates that the market is still quite lively, and there might be another opportunity waiting for you. But if the trading volume starts to decrease slowly, then you need to consider withdrawing. After all, prices won’t go up if no one is buying.
If there’s a sudden spike in trading volume at the bottom, don’t rush to buy. This might just be a brief pause in the downward trend and doesn’t indicate that a reversal is coming. However, if the trading volume keeps steadily increasing, it suggests that someone is secretly hoarding.
Competing with market makers requires wisdom and courage, and it's crucial to learn to interpret the relationship between cryptocurrency price trends and trading volume. Only by mastering these insights can you establish a foothold in this ever-changing market.
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