Newbies in cryptocurrency trading often suffer losses due to 'false breakouts'! Instead of stubbornly trying to make precise predictions, focusing on trading volume is much more reliable than just studying tutorials.

When the price breaks out, volume is the key signal. In December, ETH broke through $3,100 thanks to favorable news, with a trading volume of $29.7 billion that day, which was a 65% increase compared to the previous five days——

Institutions absorbed sell orders, and there was a clear consensus among bulls and bears, leading to an 8.97% increase over the next three days.

In contrast, ETH retraced after touching $3,050 in November, with a trading volume reaching only 42% of the average, which was indeed a false breakout.

Don't be greedy for small profits in a volatile range; the major profits come after a breakout.

Major players can't offload large amounts of chips by pulling the price up $100 unless they push it to at least $3,500 to break even.

Small investors are satisfied with a 3% gain, while large investors rely on trends; the market after ETH breaks $3,200 will definitely not be a mere tasting.

When trading perpetual contracts, it's essential to distinguish between left and right sides: left-side buying is only suitable for spot trading. During the $19 billion liquidation wave in October, millions of accounts were liquidated for counter-trending bottom fishing.

Right-side trading for breakouts is more stable; wait until ETH firmly stands above $3,200 and volume confirms before entering the market.

Bulls only go long, and bears only go short; avoid V-shaped reversals. Setting take-profit levels based on range breakdowns is sufficient.

The long-term cycle serves as a 'safety cushion' for newbies.

In November, ETH's daily chart breakout resulted in a loss of 3-5 points for false breakouts, while a true breakout could earn over 15 points+, with a very favorable risk-reward ratio.

In contrast, the smaller cycle within one hour, on December 5, saw ETH fluctuate by 3% in a short time; transaction fees and slippage were not even enough to cover the losses, which is purely a waste of energy.

Current liquidity is recovering, but the mindset of a bear market cannot be abandoned. Large investors with tens of millions can manipulate small cycles to create false breakouts.

Follow the daily signals——BlackRock's Ethereum ETF continues to see net inflows, with institutions building a foundation for the market, making the long-term cycle more reliable.

If you keep facing setbacks, follow me for a breakdown of major players' manipulation tactics next time.

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