Key Points to Note When Bottom-Fishing or Top-Taking in the Crypto Market!
1. When the price of a coin rises and there is a pullback, but the trading volume hasn’t decreased much, it indicates that the market is still active and may continue to rise.
However, if the price reaches a new high while the trading volume decreases, pay attention, as it might be nearing the peak.
2. If the price of a coin has been hovering at a low level for a long time, don’t rush to buy. Watch to see if it will test the bottom again, and then rebound sharply.
If this reversal happens, that’s a good buying opportunity.
3. When a coin has been hovering at the bottom for a long time, suddenly one day it breaks out, only to drop back again.
Don’t rush, wait for it to break out again; that might indicate it is really about to take off, and the increase could be significant.
4. If the price of a coin is surging up and then starts to move sideways with continuous small fluctuations up and down.
At this time, be cautious; it may be the market trying to lure you in, while the risks are quietly accumulating.
Remember to set a stop-loss to avoid being stuck.
In summary, before trading, set your buying and selling points and stop-loss lines; this is the hard truth for protecting your wallet.