There are five iron laws to keep in mind when trading in the cryptocurrency circle:
First, when the price rises rapidly and then slowly pulls back, it often means that the dealer is secretly absorbing funds in preparation for the next market. This pattern indicates that there may be greater room for growth in the future.
Second, if the price falls sharply and then slowly recovers, it is usually the dealer who is gradually selling, suggesting that the market may enter a downward phase. In this case, it is wise to remain vigilant.
Third, the active trading volume at high levels indicates that the market may still have room for growth, and there is no need to rush to sell. However, if the trading volume begins to shrink, it means that the upward momentum is insufficient, and you may need to consider leaving the market early.
In addition, the bottom volume may only be a short-term adjustment, and you need to wait and see. But if the trading volume continues to increase, it indicates that funds are constantly flowing in, which is usually a good time to buy.
Finally, the fluctuation of currency prices is affected by market sentiment, and the trading volume reflects market consensus and investor behavior. Following the changes in trading volume and understanding emotional fluctuations are the key to seizing the opportunity to trade in cryptocurrencies.