The price fluctuations of cryptocurrencies have their secrets; you must guess the intentions of the traders.
If the price of a cryptocurrency rises rapidly but falls slowly, it often means that the traders are secretly collecting chips, preparing for another wave of market action. They want to buy at a low price, so they deliberately let the price drop slowly, making retail investors anxious to sell, allowing them to pick up bargains.
Conversely, if the price of a cryptocurrency drops rapidly but climbs slowly like a snail, you need to be cautious; this may be traders quietly offloading their assets, and the market could be turning bearish. They want to sell at a high price, so they deliberately let the price rise slowly, allowing retail investors to think there is still hope and to hold on, giving them the opportunity to sell.
When at a high point, if the trading volume is still surging, don’t rush to sell; there may still be another wave of market action. A high trading volume indicates that there are still active trades, and the market remains vibrant. However, if the trading volume shrinks to a line, you need to withdraw quickly, as low trading volume indicates that no one is trading, and the market cannot sustain its rise.
At the bottom, if the trading volume suddenly increases, don’t rush to buy; it might just be a small pause during a downturn, and traders might still be offloading. But if the trading volume continues to steadily rise, you should consider entering the market, as this indicates that someone is actively buying, and the market might be about to reverse.
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