In the cryptocurrency market, the following four obvious signals can be observed when buying at the bottom or selling at the top:
1. Relationship between trading volume and price trend:
- If the price of a coin has a slight correction during the rise, but the trading volume remains stable or increases, it usually means that it may continue to rise. On the contrary, if the trading volume decreases when the price of a coin reaches a new high (i.e., a shrinking rise), this may be a signal of a peak.
2. Bottom rebound mode:
- When the price of a coin is sideways at the bottom, if it suddenly drops to a new low and then rebounds quickly, and exceeds the previous decline, this is usually a good time to buy.
3. Breaking through the sideways range:
- If a coin is sideways at the bottom for a long time, and then suddenly breaks through the sideways range, but then falls back or even falls below the sideways range, it may usher in a larger increase when it starts again.
4. Sideways and small fluctuations after continuous new highs:
- When a coin starts to enter a sideways state after continuously setting new highs, and there are multiple small rises and falls, this may be a signal of inducing more, and you need to pay attention to the risk of chasing highs.
These signals can help investors identify buying and selling opportunities in the market, but they still need to consider market trends, technical analysis and risk management strategies before taking action.
