The fluctuations in cryptocurrency prices hide the intentions of the market makers, and require careful consideration.
When prices rise rapidly and fall slowly, it often indicates that the market makers are quietly collecting chips, preparing to drive the market up again. They want to acquire at low prices, so they intentionally let the price drop slowly, prompting retail investors to panic sell, allowing them to pick up bargains.
When prices drop sharply and rise slowly, it may mean that the market makers are quietly selling off their holdings, and the market could be turning bearish. They want to sell at high prices, so they deliberately let the price rise slowly, making retail investors mistakenly believe there is still hope and continue holding, giving them a chance to offload.
When prices are high, if trading volume continues to increase significantly, don't rush to sell; there might still be potential for the market, as high trading volume indicates market activity. If trading volume suddenly shrinks sharply, it's time to withdraw, indicating that the market cannot sustain its rise.
When prices are low and trading volume suddenly increases, don't rush to buy; it might be a brief pause during a decline, and the market makers may still be offloading. If trading volume steadily increases, it may be worth considering entering the market, as it could be a signal that the market is about to reverse.