Decoding Market Cipher: Master 3 Tips to Easily Spot Shark Traps

In the chaotic crypto market, price candles can be manipulated, news can be exaggerated, but trading volume is something that is hard to fake consistently. If you only look at price movements and ignore volume, it’s like going into battle only seeing smoke but not hearing the cannons firing from somewhere.

After years of experience and paying many “tuition fees,” I have drawn a core conclusion: Price follows volume. Volume tells the truth, price tells lies.

The investors that sharks fear the most are not those who draw complicated indicators, but those who can read the “cards” through volume. Here are 3 secrets about volume that sharks don’t want you to know.

1. Price Drop with Increasing Volume: That’s a Trap, Not an Opportunity The deadly mistake of beginners: seeing a sharp price drop and rushing to “buy the dip.” In reality, a price decline accompanied by a surge in volume is often a collective exit signal from sharks. When volume swells while the price plunges, it’s genuine selling pressure. These “free fall” drops rarely form a bottom immediately. The best time to observe for buying is usually when: The price continues to decline but volume diminishes to exhaustion (liquidity). The market is discouraged, and no one wants to sell anymore. Another important sign is price-volume divergence: Price hits a new high but volume weakens → the upward momentum is running out of fuel. Like a car running low on gas but still trying to climb a hill. Sharks often use tactics like fake buy-sell to create illusionary volume, making the market think money is flowing in. Alert investors will patiently stay on the sidelines when they see falling prices with increasing volume, waiting for the panic to subside.

2. Sideways Movement with Decreasing Volume: The Sharks’ Patience Game Not all sideways phases are the same. Volume is the key to determining the next trend. Sideways with decreasing volume: often a phase where sharks quietly accumulate. The floating supply decreases, gradually ceding control to the manipulators. Classic scenario: Price stagnates for a long time. Volume drops to 10–30% of the previous active phase. Then suddenly, a series of bullish candles with explosive volume appears → trend reversal is triggered. Conversely, sideways movement at high levels with large volume is extremely dangerous: Price has already surged significantly before. Large volume but no further price increase → signs of distribution. Don’t believe the story of “accumulation before the next rally.” A healthy coin must break resistance with supporting volume. If the price surpasses a high but volume doesn’t follow, it’s very likely a false breakout.

3. Explosive Volume During Breakout: Real vs. Fake Seeing a breakout and rushing in? You might be walking straight into a trap. A true breakout must be confirmed by persistent volume, not just a single “flagpole” candle. Fake breakout: a strong bullish candle with spike volume, then quickly reverses and crashes. Real breakout: volume gradually increases with each step, like climbing stairs. Decisive location: Breakout at a long-term accumulation zone → signals trend initiation. Breakout at a high level after a long rally → very likely a trap to buy. Safe strategy: Wait for the price to break a key resistance with increasing volume. Observe for a retest. If the retest shows strong volume and the old resistance holds, it’s the best entry point.

Core Mindset for Surviving in the Crypto Market When the community is shouting “bull run is here” but volume is dwindling, that’s the most dangerous signal. Volume is like the heartbeat of the market: a weak heart running at full speed will eventually collapse. Consistent investors understand one fundamental rule: Volume leads, price follows. Price follows volume. In a manipulated market, reading volume gives small investors the biggest advantage. Remember: Sharks can draw candles. Sharks can spread rumors. But they cannot fake a persistent trend in volume over the long term. That is our strongest weapon. Learning to read volume won’t make you rich overnight, but it will help you avoid the most painful crashes. And in crypto, survival is already a kind of victory.