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In the Digital Currency Trading field, there is a special price movement that investors should pay particular attention to. This movement appears to be Sideways fluctuations on the surface, but in reality, it conceals intricate secrets.
Specifically manifested as: the price fluctuates slightly within a high range, neither rising significantly nor falling significantly; although the trading volume has decreased, it has not completely shrunk. This seemingly calm market state may actually be a sophisticated market manipulation technique, incorporating both the dual purposes of wash trading and inducing short sellers to enter.
This price movement usually conveys two important pieces of information:
First of all, the main funds have not withdrawn from the market; instead, they may be secretly increasing their holdings. Many retail investors find it difficult to endure a prolonged Sideways trend and may choose to exit, which just gives large funds the opportunity to accumulate at low prices.
Secondly, this may be the accumulation phase before a breakout. Once the price breaks through the consolidation range, a rapid surge is likely to occur, catching investors off guard.
In the face of this 'Sideways' situation where prices do not drop, investors should act cautiously:
Do not short easily. If the controlling force suddenly exerts pressure, the shorts may suffer heavy losses.
If you hold low-position chips, do not rush to sell; you can wait for a breakout signal.
Consider moderately increasing your position when the price breaks through and is accompanied by an increase in trading volume, in line with the market trend.
In conclusion, the seemingly calm sideways movement in the cryptocurrency market may hide turbulent undercurrents. Investors need to remain vigilant, analyze market trends in depth, and avoid being misled by appearances into making erroneous judgments.