Five Key Laws of Cryptocurrency Trading

Law One: Rapid Rise and Slow Fall Indicate Accumulation

When the price rises sharply and falls slowly, the whales are accumulating for future upward momentum.

Law Two: Rapid Fall and Slow Rise Indicate Distribution

When the price falls quickly and rises slowly, the whales are distributing, and the market is likely to enter a downtrend.

Law Three: Volume at the Top and No Volume at the Bottom

If there is high volume at the top, the price may still have momentum, so there's no need to rush to sell; if there is no volume, then momentum has run out, and it's advisable to exit quickly to avoid risk.

Law Four: Volume at the Bottom Requires Caution

If there is only volume at the bottom, it may indicate a temporary pause in the downtrend, so it is not advisable to buy; if there is sustained high volume, it indicates capital inflow, which may warrant consideration for entry.

Law Five: Trading Cryptocurrency Means Trading Sentiment

Trading cryptocurrency means trading market sentiment; trading volume reflects market consensus and investor behavior patterns, which dominate price fluctuations.