Important Points to Note When Buying the Dip or Selling the Top in the Crypto Market!
1. When the price of a cryptocurrency rises and then retraces but the trading volume doesn’t decrease much, it indicates that the market is still active and may continue to rise.
However, if the price hits a new high but the trading volume decreases, be cautious as it may be nearing a peak.
2. If the price has been hovering at a low level for a long time, don’t rush to buy. See if it will test the bottom again and then rebound sharply.
If this reversal occurs, it may be a good time to buy.
3. If the price has been hovering at the bottom for a long time, and suddenly breaks out one day only to drop back down, don’t rush. Wait for it to break out again; that may indicate it is truly about to soar, and the increase could be significant.
4. If the price is rising steadily and then starts to move sideways with continuous small fluctuations, be alert. The market may be trying to lure you in while risks are quietly accumulating. Remember to set a stop-loss to avoid being trapped!
In summary, before trading, set your buy and sell points as well as stop-loss lines; this is the fundamental principle for protecting your wallet.
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