Key Points for Bottom Fishing and Top Escaping in the Cryptocurrency Market:
Relationship Between Trading Volume and Price: When the price of a coin rises and then retraces, if there is no significant decrease in trading volume, it indicates that market enthusiasm remains high, and the price may continue to rise.
Conversely, if the price reaches a new high but trading volume decreases, caution is warranted as the top may be approaching.
Judgment During Low Price Stagnation: When the price of a coin remains low for an extended period, do not rush to enter the market. Observe whether there will be a second bottom test followed by a quick rebound. If the reversal is successful, this is a relatively good time to enter.
Signals for Bottom Rebound: If the price of a coin hovers at the bottom for a while and then suddenly surges and retracts, there is no need to rush to chase the high. When the price rises again, it may indicate that the market is about to strengthen significantly.
Consolidation After a Price Increase: If the price of a coin rises consecutively and then begins to consolidate with decreasing volatility, be cautious as this may be a signal to attract more buyers, and risks are accumulating.
At this time, be sure to set a stop-loss point to prevent being trapped.
