Five key hard truths of the bull market of cryptocurrency speculation
First, the rhythm of the rise and fall of the coin price hides a mystery. If the coin price rises quickly but falls slowly, there is a high probability that someone is secretly buying. It is like the coin price soars like a rocket, but it falls back as slowly as a walk. This often means that big investors are quietly collecting chips, and it is likely that there will be another big market in the future. On the contrary, if the coin price falls quickly but rises slowly, it is a signal to sell. For example, the coin price plummets like a waterfall, but it rises as slowly as a snail when it rises back. Perhaps big investors are quietly selling, and the market situation may change soon.
Second, at high prices, the trading volume determines whether to stay or go. When the price is in a high area, if the trading volume continues to increase, don't rush to sell, there may be room for further increase. However, once the trading volume suddenly becomes scarce, you have to evacuate quickly, because it means that it is difficult for the price to go up again, and the rise has been weak.
Third, be cautious in judging the trading volume in the low-price area. In the low-price area, if the trading volume suddenly increases, don't rush to enter the market, this may just be a brief pause in the decline. Only when the trading volume has been steadily increasing, it is worth our careful consideration to enter the market, otherwise it is easy to fall into a trap.
Fourth, the trading volume reflects the market's people's will. You must know that cryptocurrency speculation is actually speculation on people's hearts, and the trading volume is precisely the intuitive reflection of everyone's attitude towards the market. The rise and fall of the currency price, in the final analysis, is driven by market sentiment. The trading volume is like a sign of whether everyone's ideas are consistent. Following the trend shown by the trading volume, we can feel more at ease.
Fifth, always pay attention to the trading volume to grasp the market. In the process of cryptocurrency speculation, no matter which stage of the bull market, we must pay close attention to the changes in trading volume, through which we can gain insight into the various signals hidden in the market, and then make better buying and selling decisions, so that we can have more control in the cryptocurrency market full of variables and strive to obtain ideal returns.