The fluctuations in cryptocurrency prices hold secrets; you must guess the thoughts of the market makers.
If the price rises rapidly but falls slowly, it is often the case that the market makers are secretly collecting chips, preparing for another big market movement. They want to buy low, so they deliberately let the price drop slowly, causing retail investors to panic and sell, allowing them to pick up bargains.
Conversely, if the price drops rapidly but rises slowly like a snail, you need to be cautious; this may indicate that the market makers are quietly offloading their assets, and the market may be turning bearish. They want to sell high, so they intentionally let the price rise slowly, making retail investors believe there is still hope and prompting them to hold on, giving the market makers the chance to sell.
When the price is high and trading volume is surging, don't rush to sell; there may still be another wave of market activity. A high trading volume indicates that there are still active traders, and the market retains vitality. However, if the trading volume shrinks to a line, you need to exit quickly because a low trading volume suggests that no one is trading anymore, and the market is unable to rise.
At the bottom, if the trading volume suddenly spikes, don't rush to buy; this could be a brief pause in a downward trend, and the market makers may still be offloading. But if the trading volume steadily increases, you should consider entering the market, as this indicates that someone is actively buying, and the market may soon reverse.