1. Rises sharply, falls slowly? Hold on tight, this is a signal that the main force is accumulating.
After a sharp rise in the market, a slow decline is often a classic move for the main force to suppress the market and accumulate shares. For example, last year BTC rose from $25,000 to $30,000, followed by a week of slight declines, but the bottom gradually rose, indicating that large funds were quietly building positions. At this time, holding onto your chips is more important than frequent operations—'Every pullback in a bull market is an opportunity to get on board.'
2. Sudden drop with weak rebound? Don't reach out, the main force has already run away.
If the rebound after a sharp drop is weak and powerless (for example, if trading volume shrinks and the rebound is less than 30% of the drop), it is mostly a trap to lure in buyers. I have seen APT drop 40% in one night and then rebound 10%, with many rushing in to 'buy the dip,' only to find it breaking new lows the next day. A true bottom requires continuous capital inflow to confirm; otherwise, buying the dip just means handing over shares to the market makers.
3. High volume at the peak is not a top; low volume rises are the most dangerous.
Many people think a high trading volume indicates a peak, but the main force often sells out during 'low volume new highs.' For example, a certain MEME coin continuously rose with low volume at historical highs, showing obvious divergence between volume and price, and then halved within a week. If the volume doesn't keep up with the price, it indicates a depletion of consensus; at this time, it's better to earn less than to gamble on the last spike.
4. Don't get excited about a single large volume at the bottom; continuous volume is the real reversal.
A solitary large volume long day may be a trial or a deception, but if it stands firmly at a key position (like the weekly MA30) with continuous volume for more than three days, the reversal probability is greater. For reference, in October 2023, ETH repeatedly built a bottom with large volume when it was at $1500, and then rose to $4000 in the next six months. It's more prudent to wait patiently for funds to form a synergy than to blindly chase the rise.
5. Indicators can be misleading; volume is the true reflection of sentiment.
MACD golden crosses and dead crosses, KDJ overbought and oversold can all mislead traders, but trading volume is built from real money. For example, when a new coin is launched, all indicators may strengthen, but the average daily trading volume is only 1 million USDT, which is obviously a controlled illusion. I am used to using DexScreener to monitor large transactions on-chain, combined with trading volume to verify direction.
6. No desire means strong: if you can't stay out, you don't deserve to talk about timing.
The crypto market trades 24/7, but opportunities are not available every day. Last year, Bitcoin consolidated for three months, and I simply stayed out and observed until it broke through the previous high, avoiding countless turbulent losses. 'Resting' is also a strategy, especially when market noise is rampant; taking a few days offline to calm down can actually help clarify the main line.
In conclusion: slow is fast; following the rules is the way to survive.
These six iron rules from this guy in Shenzhen essentially counteract human nature—restrain greed when chasing rises and refuse to cut losses when in fear. After making a profit every month, he must withdraw 30% to buy gold or US bonds, saving enough for down payments on three houses in five years. The true wealth code in the crypto world is not the myth of getting rich quickly, but the discipline of 'not losing.'
If you are also struggling in the market, you might as well remember:
Invest with spare money; losing it won't affect your life.
The stop-loss line is the lifeline (single loss ≤ 5% of the principal);
Look less at the market and learn more; 90% of the market trends have nothing to do with you.
Follow Xiang Ge to learn more first-hand information and precise points about the coin circle; become your navigation in the crypto world; learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
