Hello everyone. Today I want to talk about the widely discussed but often misunderstood trend signals in the coin market. These observations come from years of market observation and trading practice.

**Three Typical Operations of BTC**

The most common pattern is called "rapid rise and slow decline" — after BTC suddenly surges, it is followed by a prolonged downtrend. Many people think this is a market adjustment, but in fact, it often means that large funds are liquidating their positions. If you panic and cut your losses at this time, it is equivalent to giving up on the rebound profits later.

A more dangerous signal is the "single-day flash crash." You will see BTC surge by 20% in a single day, followed by a drop of more than 15%. Such extreme fluctuations often indicate liquidity exhaustion and a complete reversal of sentiment. Slow-reacting traders get caught in this.

The third common scenario is "sharp drop and slow rebound". The price plummets in a short period and then starts to gradually rise. During this phase, do not rush to catch the bottom. The real confirmation of the bottom requires looking at the volume – only with increased volume confirmation does it indicate that there is genuine buying happening.

I met a tech person from Beijing who used 20 times leverage to go long in hopes of making a down payment. As a result, when the coin price plummeted, his position was liquidated, leaving him with 1.2 million in foreign debt. The savings his mother had accumulated over the years from scavenging were also put into it. This lesson illustrates one thing: trading requires discipline, and discipline comes from respecting risk.

**The Energy Code of ETH**

The trend analysis of ETH shows that trading volume is often more honest than the price.

When there is a volume fluctuation at a high position, it indicates that the market is still in a game of speculation, and it may continue to rise. However, if the trading volume suddenly drops at the same time, a crash may be imminent. Many people continue to hold their positions while observing price consolidation at high levels, but fail to notice that the trading volume is gradually shrinking—this is a dangerous signal.

The bottom range should distinguish between two situations. A single day's explosive volume may just be an emotional outburst, and the next day it will return to calm. However, if you see a period of consolidation with decreasing volume followed by several consecutive days of moderate volume increase, this usually indicates that large funds are quietly accumulating positions. At this point, holding is actually the right choice.

The key is to learn to distinguish between "virtual volume" and "real volume". Virtual volume refers to a sudden large bearish or bullish candlestick with a surge in trading volume but no follow-up; real volume, on the other hand, is sustainable and has a regular accumulation of trades.

**The market has its tricks, but tricks require patience**

The most common mistake in the cryptocurrency circle is chasing highs and selling lows. People rush in when they see a rise and flee when they see a decline, resulting in frequent losses. The market specializes in punishing those who are not disciplined, but it favors those who are patient and stick to their rules.

Do not speculate where the top is, nor fantasize about where the bottom is. Just look at the signals and act on them. When there is a definite danger signal, execute a stop-loss. When there is a real entry signal, gradually position yourself.

What are the benefits of doing this? It avoids the huge losses caused by most emotional decisions. It's not about making the most profit on every trade, but rather about surviving long enough to let compound interest do its work.