5 Laws to Observe Market Trends in Cryptocurrency:
1. Rapid rise and slow fall indicates accumulation.
A rapid increase followed by a slow decrease suggests that the market maker is accumulating shares in preparation for the next round of increases.
️2. Rapid fall and slow rise indicates distribution.
A rapid decrease followed by a slow increase means that the market maker is gradually selling off, and the market is about to enter a downward cycle.
3. Don't sell on high volume at the top, run quickly if there's low volume at the top.
High transaction volume at the top may indicate further increases; however, if transaction volume shrinks at the top, it indicates insufficient upward momentum, and one should exit quickly.
4. Don't buy on high volume at the bottom, but continuous high volume is a buy signal.
High volume at the bottom may be a continuation of the decline and requires observation; continuous high volume indicates that funds are continuously entering, which could be a buying opportunity.
5. Trading cryptocurrency is trading emotions, consensus equals transaction volume.
Market sentiment determines price fluctuations in cryptocurrency, and transaction volume reflects market consensus and investor behavior!#市场分析 #分析行情