Key Points to Note When Buying the Dip or Selling the Top in the Cryptocurrency Market
When the price of a cryptocurrency rises and then retraces, if trading volume does not decrease, it indicates that market enthusiasm is still present, and it may continue to rise; if the price reaches a new high but trading volume decreases, be cautious as a top may be approaching.
If the price of a cryptocurrency has been hovering at a low level for an extended period, do not rush to buy; observe whether it will test the bottom again before quickly rebounding. If the reversal is successful, it presents a good buying opportunity.
If a cryptocurrency has been at the bottom for a long time, then suddenly spikes and falls back, do not be in a hurry; wait for another spike, as it may indicate a significant upcoming rise.
When the price of a cryptocurrency rises continuously and then starts to consolidate, with small fluctuations up and down, be cautious, as this may be a market trap, with risks accumulating. Be sure to set a stop-loss to avoid being trapped.
In summary, clarify your entry and exit points and stop-loss levels before trading; this is key to protecting your capital.
As a seasoned cryptocurrency investor, I, Tu Fei, share my experiences and insights. Interested in the crypto world but don't know where to start? Click on my avatar to see the introduction to cooking industry and witness the moment of miracles together