Five Key Laws of Cryptocurrency Trading
Law 1: Rapid Rise, Slow Fall Indicates Accumulation
When the price rises sharply and falls slowly, it indicates that the market maker is accumulating for a future rise.
Law 2: Rapid Fall, Slow Rise Indicates Distribution
When the price falls sharply and rises slowly, it indicates that the market maker is distributing, and the market is likely entering a downtrend.
Law 3: Volume at the Top Signals Caution
When there is volume at the top, the price may still have momentum, so there is no need to rush to sell; if there is no volume, then the momentum is exhausted, and it is advisable to exit quickly to avoid risk.
Law 4: Volume at the Bottom Signals Caution
If there is only volume at the bottom, it may indicate a temporary pause in the downtrend, and it is not advisable to buy; if there is sustained volume and inflow of funds, it may be worth considering entering the market.
Law 5: Trading Cryptocurrency is Trading Market Sentiment
Trading cryptocurrency is about trading market sentiment, and the trading volume reflects market consensus and investor behavior patterns, which dominate price fluctuations. #BTC☀ #btc走勢