If you want to accurately hunt the bottom and escape the top in the cryptocurrency market, paying attention to the following four key signals will help you avoid blindly following the trend:
1⃣️Slight correction during the rise: If the currency price drops slightly during the rise, but the trading volume remains stable, this usually indicates that the upward trend will continue. However, if the price reaches new highs but volume decreases, this may be a warning sign of a peak.
2⃣️Buying timing after the bottom goes sideways: When the currency price goes sideways in the bottom area, don’t rush to buy. You should wait for the price to rebound quickly after hitting a new low to cover the previous decline. This indicates strong buying and is a better time to buy.
3⃣️Fallback and restart after breakthrough: If a currency suddenly breaks through the trading range after trading sideways at the bottom, but then falls back, or even falls below the previous range, when it starts again, it may experience significant gains. .
4⃣️Sideways after consecutive new highs: After consecutive new highs, if the currency price begins to trade sideways, and there are multiple small increases and then declines, this may be a signal that the market will attract more bulls, and you should be wary of the risk of chasing higher prices. .