1. When the price rebounds after the explosive volume decline at the beginning of the circle, the main funds attracted will be bargain hunting players and short-term strategic funds. For those who buy according to this strategy, the profit stop point is very likely to be aimed at the short-term previous high before the plunge. If the price is close to the previous high of the short cycle, there must be a wave of selling pressure (previous purchases were stuck and unwinding + low-priced players took profits). This wave of selling pressure is too great and is likely to lead to a series of selling.

2. The sell-off is not strong enough (the trading volume is insufficient). After the price plummets at the highest point, the subsequent continuous decline can be seen as someone constantly cutting the meat to stop the loss, or the protective stop loss of the previous wave is constantly being triggered. Without the support of strong funds for buying (the buying volume at the arrow is not high), it can be seen that the main funds are small investors. The explosive selling and explosive buying mentioned before are all the same concept. The market Whether the price changes are injected by powerful funds will greatly affect the stability of the market price. In other words, it continued to fall, but there was no explosive decline, because the price was bought and then sold by many short-term small-capital retail investors. It is not the United States where a super rich person buys 100 million US dollars at a time and waits for ETH to rise to 5,000 next year. dad.

How to apply it in actual operation?

When you see the message 1, you can try to buy at the circled position, but you must set a protective stop immediately. When you see the message 2, don’t chase the price to buy. $BTC $ETH