The Five Iron Rules of Cryptocurrency Bull Markets, Must Remember!

In the cryptocurrency market, seizing the right timing is crucial for investors. Here are five key principles to help you maintain a clear mind during a bull market and make wiser investment decisions.

First Iron Rule: Identify Hoarding Signals

Phenomenon: When the price of a coin rises rapidly, even if it falls, the decline is very slow.

Interpretation: This usually means that major players are quietly accumulating chips in preparation for a future surge.

Action Guide: At this time, you should be vigilant and closely observe market dynamics. If it is confirmed that institutions or large holders are accumulating, you may consider following their lead, but ensure you have enough information to support this judgment.

Second Iron Rule: Beware of Whales Selling

Phenomenon: The price of the coin drops rapidly, but when it rises, it appears hesitant.

Interpretation: This may be the whales taking advantage of a brief rebound to sell off a large amount of tokens they hold.

Action Guide: In such situations, do not blindly bottom-fish. Be cautious and even consider reducing your position to avoid further losses.

Third Iron Rule: Pay Attention to Volume Changes

High Point Strategy: When the market reaches a high point and trading volume significantly increases, there’s no need to rush to sell; the market may still have upward potential.

Note: Once you notice a sudden drop in trading volume, you should immediately take action to exit to avoid being trapped.

Low Point Strategy: If the market is at a low point and trading volume suddenly increases, do not rush to enter; this may be a temporary rebound.

Advice: Be patient and wait until you see continuous growth in trading volume and signs of capital inflow before considering entering the market.

Fourth Iron Rule: Understand Market Sentiment

Core Concept: Cryptocurrency speculation is essentially about “speculating on human emotions.” The overall sentiment of the market and the behavior of participants have a direct impact on price trends.

Operation Tip: Monitor trading volume to sense market sentiment. A significant increase in trading volume indicates consensus in the market with active participation; conversely, it indicates a lack of confidence in the market.

Fifth Iron Rule: Long-Term Perspective and Risk Management

Importance: While short-term fluctuations can bring quick profits, long-term holding of quality assets is key to steady appreciation.

Practical Advice: Build a balanced investment portfolio to diversify risks. At the same time, establish a reasonable stop-loss and take-profit plan.