You must understand the kind of torment in the crypto world—fearing to stand guard while chasing the rise, afraid of being trapped while buying the dip, watching Bitcoin fluctuate around $88,000, with $47 billion in transactions over 24 hours all being a contest of funds, making it difficult to get a good night's sleep.
My cousin was also in this trap three years ago, with only 10,000 U in her account. She fell for the market maker's wash trading and was fooled by fake breakouts, until she later changed her trading strategy from "gambling" to "looking at volume and price" and gradually found her rhythm.
These 6 points are derived from practical experience and may help you avoid some detours.
**Beware of sharp rises and slow declines**. This is an old trick used by the big players to wash out retail investors' chips. The real top often comes crashing down directly, don't be fooled by terms like "healthy correction".
**A rapid drop followed by a slow rise is more dangerous**. A rebound after a crash is nine times out of ten a trap to lure you in. The market never gives away profits for free.
**High positions must pay attention to trading volume**. On December 15th last year, when the cryptocurrency index plummeted by 9.6%, the trading volume surged to 10.369 billion. A high position without volume support is a landmine.
**Buying the dip looks at continuous volume**. Don't expect a single day's volume to save you; you need to see continuous volume for three days to confirm that funds have really entered the market.
**Candlestick charts can be misleading, but volume cannot.** Recently, Bitcoin has been fluctuating within a narrow range, and the volume has clearly shrunk, which is a direct signal that the market is lacking momentum.
**Having a cash position is also a skill**. The current market is repeatedly testing the key support level of $83,000. Sometimes it's worth more to stay calm and not act impulsively than to operate blindly.
The pitfalls in the crypto world are indeed many, but you don't have to wade through them alone. If you find the right method, you can pay less tuition. I only share trading techniques that can be directly applied, and friends who make money through the combination of volume and price continue to adhere to this line of thought.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
12 Likes
Reward
12
1
Repost
Share
Comment
0/400
AirdropHunterWang
· 10h ago
Looking at the volume and price trap is indeed reliable; I am also pondering this now.
You must understand the kind of torment in the crypto world—fearing to stand guard while chasing the rise, afraid of being trapped while buying the dip, watching Bitcoin fluctuate around $88,000, with $47 billion in transactions over 24 hours all being a contest of funds, making it difficult to get a good night's sleep.
My cousin was also in this trap three years ago, with only 10,000 U in her account. She fell for the market maker's wash trading and was fooled by fake breakouts, until she later changed her trading strategy from "gambling" to "looking at volume and price" and gradually found her rhythm.
These 6 points are derived from practical experience and may help you avoid some detours.
**Beware of sharp rises and slow declines**. This is an old trick used by the big players to wash out retail investors' chips. The real top often comes crashing down directly, don't be fooled by terms like "healthy correction".
**A rapid drop followed by a slow rise is more dangerous**. A rebound after a crash is nine times out of ten a trap to lure you in. The market never gives away profits for free.
**High positions must pay attention to trading volume**. On December 15th last year, when the cryptocurrency index plummeted by 9.6%, the trading volume surged to 10.369 billion. A high position without volume support is a landmine.
**Buying the dip looks at continuous volume**. Don't expect a single day's volume to save you; you need to see continuous volume for three days to confirm that funds have really entered the market.
**Candlestick charts can be misleading, but volume cannot.** Recently, Bitcoin has been fluctuating within a narrow range, and the volume has clearly shrunk, which is a direct signal that the market is lacking momentum.
**Having a cash position is also a skill**. The current market is repeatedly testing the key support level of $83,000. Sometimes it's worth more to stay calm and not act impulsively than to operate blindly.
The pitfalls in the crypto world are indeed many, but you don't have to wade through them alone. If you find the right method, you can pay less tuition. I only share trading techniques that can be directly applied, and friends who make money through the combination of volume and price continue to adhere to this line of thought.