After years of navigating the cryptocurrency market, many seasoned traders realize that behind the price fluctuations there are certain recurring patterns. These patterns are not some mystical secrets, but long-term laws formed by the collective behavior of market participants. Understanding these laws can at least help you avoid some common pitfalls.



**The Logic Behind Fast Rises and Slow Dips**

When the price rises rapidly in a short period, followed by a slow correction, many people think a top is near. But experienced traders know that this pattern is often the opposite—whales are quietly accumulating chips. Once the accumulation reaches a sufficient level, the next surge could happen at any time. Conversely, if there is a sharp decline followed by a weak rebound and slow gains, be cautious. This usually indicates that large players are gradually unloading during the rebound, and the market is about to enter a downtrend.

**The Language of Trading Volume**

At high levels, volume speaks volumes. If the trading volume begins to increase, it indicates room for further upward movement, and the market may continue to push higher. But if the volume suddenly shrinks, with obvious lack of momentum, and the bulls' strength wanes, it’s time to consider taking profits. The situation at the bottom is more complex. A single spike in volume at the bottom often represents the last struggle during a decline, not a true reversal. The key is whether the volume can continue to grow—persistent increasing volume signals continuous capital inflow, which is the real opportunity to consider entering the market.

**Emotions and Consensus Are the True Drivers**

The crypto market is fundamentally driven by emotions. Price movements ultimately depend on the collective sentiment of market participants, and volume reflects the degree of consensus. Some people like to talk about grand "patterns" and "future prospects," but in actual trading, empty talk about patterns often leads to one outcome: getting trapped at high levels and becoming the last bag-holder. Understanding market sentiment and seizing the moment when consensus shifts is the true way to survive.

These five rules are summarized from the experiences of countless veteran traders who paid with real money. Mastering them can help you avoid many detours; otherwise, you may have to keep paying tuition.
View Original
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.
  • Reward
  • 4
  • Repost
  • Share
Comment
0/400
CommunityWorkervip
· 15h ago
It's the same old story, right? Correct in theory, but in practice, you're still caught. --- I've heard the volume argument too many times. The key is whether you can truly stay calm. --- Emotional driving is really a problem. I always tell myself to be rational, but I still follow the herd. --- Fast rise and slow fall, accumulating chips... Is this approach reliable? It feels like the market makers are also adapting to the situation. --- I just want to know how to avoid ending up as the last bag-holder. Looking for practical strategies. --- These rules require capital to work. Small retail investors simply don't have the reaction time. --- Is continuous volume increase the key? Then why do I see significant volume but still get cut? --- It's easy to say, but when market sentiment truly reverses, I guess few people can exit in time.
View OriginalReply0
PessimisticOraclevip
· 15h ago
There's nothing wrong with that, I'm just afraid that even if you know, you still can't execute. Every time I see trading volume shrink, I still want to buy the dip.
View OriginalReply0
AirdropHuntervip
· 16h ago
It's the same theory again, sounds good in theory but still easy to get hit hard in practice. --- Only when trading volume keeps increasing can you enter? Why do I always chase the high? That's the problem. --- Fast rise and slow fall = accumulation by the big players. I've heard this logic many times, but when it really happens, I still panic. --- Talking about emotion-driven trading, ultimately it still depends on whether you can withstand the volatility. --- This is how the last bagholder is formed, speaking from personal experience haha. --- I agree with continuous volume increase, but judging the bottom is really more difficult than I imagined. --- It seems each trader's "Five Rules" are different. Why are there so many versions? --- The part where I got caught at a high position hit me. Every time I think about the future prospects, I end up taking the other side. --- I've used the volume-based approach before, and it feels quite effective, but it needs to be combined with market sentiment. --- Good writing, but there's a big gap between knowing these things and actually doing them.
View OriginalReply0
DeepRabbitHolevip
· 16h ago
Ha, it's that same story about the market makers accumulating chips. Why do I feel like these "patterns" always work every time? --- When trading volume shrinks, it's time to run. This is true; only those who have been trapped understand. --- To put it simply, don't be greedy. Take profits when the time is right—simple and straightforward. --- The phrase "market driven by emotions" hits the mark. How many times have I been cut by emotions? --- It's a bit hard to judge the volume at the bottom. How to distinguish between a single spike and sustained volume? What do you all think? --- The lessons learned with real money—just listening to them makes you want to quit, but you probably have to pay another round of tuition fees. --- Fast rise and slow fall might actually be building positions? I need to see more cases before I believe this logic. --- That last sentence really hits home. There must be quite a few still paying tuition fees.
View OriginalReply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)