5 Laws of Trading in the Cryptocurrency Market

1. Rapid price increases and slow declines indicate accumulation. A rapid increase followed by a slow decline suggests that the market makers are accumulating shares in preparation for the next price surge.

2. Rapid price declines and slow increases indicate distribution. A rapid decline followed by a slow increase means that the market makers are gradually selling off, and the market is about to enter a downward cycle.

3. Do not sell on high volume at the top; sell quickly if there is low volume at the top. High trading volume at the top may indicate that prices could continue to rise; however, if volume decreases at the top, it suggests insufficient upward momentum, and one should exit the market quickly.

4. Do not buy on high volume at the bottom; it's okay to buy if there is sustained high volume. High volume at the bottom may indicate a continuation of the downtrend and requires observation; sustained high volume suggests that funds are continuously entering the market, making it a consideration for buying.

5. Trading cryptocurrencies is about trading emotions; consensus is reflected in trading volume. Market sentiment drives price fluctuations, and trading volume reflects market consensus and investor behavior!

In fact, many things are well understood, but people cannot control their hands or manage their mindset, ultimately leading to severe losses! Risk management is an art! Heed advice, and have a full meal! Wisdom equates to understanding, and if you can't read the market well, consider following the blogger.