Keep these 5 points in mind

First, rapid rises and slow corrections are often signs of bookmakers collecting funds, indicating that they are actively collecting chips to prepare for a new round of subsequent rises.

Second, when there is a rapid decline and a weak rebound, this is usually regarded as a signal for market makers to ship, indicating that the market may be about to enter a downward trend, and investors should be wary of risks.

Third, in the price top area, if the trading volume increases significantly, there is no need to rush to sell, because high trading volume may indicate market activity and the potential for further rise; however, if trading volume begins to shrink, it may be that the market momentum is weakening. signal, it would be wise to exit the market at this time.

Fourth, in the price bottom area, the initial heavy volume is not necessarily a good opportunity to buy, because it may be a short-term rebound or relay in the decline process, and it needs to be observed. However, if trading volume continues to increase, it may mean that funds are continuing to flow into the market, and it may be safer to enter the market at this time.

Fifth, speculation in the digital currency market is often accompanied by emotional fluctuations, and the market consensus is directly reflected in trading volume. Market sentiment is a key factor driving currency price fluctuations, while trading volume is an important indicator of market consensus and investor behavior. Therefore, understanding and grasping changes in market sentiment and trading volume is crucial to making wise trading decisions in the digital currency market.