I have been involved in the cryptocurrency field since 2013, with my earliest encounters being Bitcoin, Ethereum, and Dogecoin.
As one of the first "miners" in the country to mine Dogecoin using graphics cards, I could mine over 30,000 Dogecoins in a single day at my peak. Later, feeling that mining efficiency was too low, I bought 10 million Dogecoins in batches at prices ranging from $0.0005 to $0.001. Starting in 2014, I switched to mining Ethereum with graphics cards, and in 2022, I bought 60,000 GT coins around the $1.6 to $2.6 range, while also holding 2 million TRX. By 2020, my account assets once surged by 5 million.
However, the market is never short of variables: in 2020, I lost 400,000 due to a scam; in 2022, I faced a contract liquidation of 600,000; and I invested in mining equipment, incurring another loss of 300,000, totaling losses that once reached 5 million. Fortunately, after going through ups and downs, my account assets have recovered to a profit of 8 million. Seeing countless people in the crypto space still suffering losses, I decided to share my practical experiences from these years today—discussing how to survive in the market and even turn defeats into victories, which can at least save you a few years of detours.
Core Experience 1: Understanding trends is the first rule.
Trend lines are divided into **long-term trends** and **short-term trends**:
- Long-term trends should be observed using daily, weekly, and monthly charts to judge the market's overall direction (such as bull and bear cycles);
- Short-term trends can refer to 5-minute, 1-hour, and 4-hour charts to capture entry or exit opportunities.
Key Rules:
- In a bull market, trends often exhibit "prolonged upward movement," while in a bear market, they show "prolonged downward movement";
- A sudden sharp rise often signals a peak (followed by a high probability of a pullback), while a sudden sharp drop is usually a trap to lure short positions (after a spike, a rebound is likely);
- Trading volume serves as a "verifier" of trends: a breakout with increased volume above resistance levels is a strong bullish signal; a breakout with increased volume below support levels requires caution against a downturn.
Focus on the MACD indicator trends; this tool is very useful, focusing on three dimensions:
1. MACD operation range
- When the MACD double lines (fast line + slow line) consistently operate above the **0 axis**, it indicates that bullish forces dominate, and the overall trend is strong; even if there is a short-term correction, the medium to long-term outlook remains bullish;
- If the double lines remain below the **0 axis** for a long time, the bears dominate the market, and caution is needed before attempting to bottom out.
2. Golden cross signal of fast and slow lines
- When the **fast line (DIF)** crosses above the slow line (DEA) to form a "golden cross," and both lines approach or break through the 0 axis simultaneously, this is a clear **bullish entry signal**, especially if the golden cross forms above the 0 axis, indicating stronger explosive potential.
3. Death cross signal of fast and slow lines
- If the **fast line crosses below the slow line** to form a "death cross," and both lines move synchronously below the 0 axis, it indicates a short-term trend reversal to decline, necessitating decisive reduction of positions or exiting to avoid downside risk.
Two major techniques for accurately determining price levels:
- Closing price verification of main force intentions
If a cryptocurrency's **closing price gradually rises over several consecutive days**, it indicates that main forces are gently accumulating or shaking out positions; if on a certain day the closing price **stably stands above a key resistance level** (such as previous highs, moving average resistance), and does not retrace below the next day, then the **probability of a genuine breakout is very high**, and one can follow the trend to enter.
- The logic of breakout after low-volume consolidation
When a cryptocurrency experiences **prolonged low-volume consolidation** (low trading volume, very little price fluctuation), and the longer the consolidation period (such as over 3 months), it often means that the main forces are **quietly accumulating at low levels**. Once trading volume suddenly increases, and the price quickly breaks through the consolidation range, the **short-term upward potential is at least three times**, at which point one should closely monitor volume changes and decisively follow up.
Use the "rectangle rule" to lock in key price levels:
- Support levels during a decline
If a cryptocurrency price repeatedly oscillates and stays within a certain price range (like points A-B), and rebounds multiple times after falling into this range, then that range serves as a **strong support level**, which can be seen as a "buying reference zone."
- Resistance levels during an uptrend
If a cryptocurrency price repeatedly attempts to break through a certain range (like points C-D) and fails while staying for a long time, then that range constitutes a **strong resistance level**, and one must be cautious of retracement risks before breaking through.
Note: Support and resistance levels can change with trends—breaking below a support level may turn into a subsequent resistance level for a rebound, while breaking above a resistance level may become a support level during a retracement.
Currently in a bull market, with opportunities emerging every day; we share codes daily.
If you want to eat meat, find Brother Fish; he won't lead fans to burst the cabin, nor will he blindly open the pot.
Continuously monitor BTC, ETH, BNB.
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