A high-level decline in volume usually means that the market may be at risk of being tempted to buy more. Do you understand the high-level decline in volume? Imagine that in a large shopping mall, a large crowd of people suddenly gathered when a stall was about to close. This situation was not accompanied by any special promotions, such as big discounts or buy-one-get-one-free promotions. As a passing customer, seeing such a scene, you may join the crowd out of curiosity to see what products attracted so many people. But when you squeeze in, you find that there are actually no particularly attractive products on the stall. The crowd is just to create the illusion of hot sales. They may be hired to create an atmosphere. Once enough customers are attracted, these "supports" will quickly disperse, leaving those customers who do not know the truth confused. Similarly, in the cryptocurrency market, if the price of the currency is already high, but the trading volume has decreased, and suddenly a large amount of funds intervene, you need to be vigilant at this time. High levels mean higher investment costs, and the sudden intervention of large amounts of funds may indicate that the market makers are manipulating the market. The dealer invests a lot of money to push up the price of the currency, the purpose may be to attract retail investors to follow suit and let them take over at a high price, while the dealer withdraws after the retail investors buy, leaving the retail investors facing the potential risk of loss.
Therefore, when the market rises at a high level with shrinking volume, we should be cautious and avoid blindly following the trend. Instead, we should deeply analyze the market dynamics and fundamental information and make rational investment decisions.#bnb$BTC #VanEck提交首个SolanaETF #币安合约锦标赛 #以太坊ETF批准预期 #Meme板块普涨 #美联储何时降息? $BTC $ETH