It is said that the cryptocurrency market is like a martial arts world, full of changes and hidden mysteries. Today, let's discuss the five major laws of cryptocurrency trading to help you navigate this unpredictable market.
Law One: Rapid Rise and Slow Drop Indicates Accumulation. This is like the dealer playing 'to entice and then let go'; the price rockets up but drops slowly. Hey! At this moment, the dealer is quietly accumulating, preparing for big moves ahead.
Law Two: Rapid Drop and Slow Rise Indicates Distribution. When the price drops like a roller coaster but rises like a snail, don't hesitate; the dealer is distributing, and the market is likely entering a downtrend.
Law Three: Volume at the Top Means Caution. When reaching the top, if there is volume, don't rush to sell; the price might still have some momentum. If there is no volume, then withdraw quickly, as the power is gone and danger is imminent.
Law Four: Caution with Volume at the Bottom. Volume at the bottom is not necessarily a reversal signal; it might just be a breather during a downtrend. Only consider entering when there is sustained volume and a significant influx of funds.
Law Five: Trading Cryptocurrencies Reflects Market Sentiment. The cryptocurrency market is driven by market sentiment, and trading volume is the 'barometer' of market consensus and investor behavior, dictating the ups and downs of prices.
There are risks in the cryptocurrency market; invest with caution. Remember these five laws!