Plunge! Is it a wash sale or unloading? Understand these signals to avoid being left behind.
Just now, there was another wave of plummeting, are you panicking? Is the big player washing out or completely unloading? If you can't tell the difference, should you be greedy when others are fearful or just follow the crowd? What direction lies ahead?
🔥 A plunge isn't necessarily a disaster.
1. A wash sale is an opportunity; unloading is the end.
· During a wash sale, the big player places large sell orders to scare others, but the key price level will never be broken, and the trading volume shrinks, quickly recovering after the drop.
· During unloading, the big player quietly sells, and the support level breaks repeatedly, with weak rebounds and increased trading volume but stagnant prices.
2. When others are fearful, you need to see "who is afraid."
· Retail investors panic and cut losses, which may indicate a wash sale; if large investors and whales are fleeing, it's likely unloading.
· Buffett said, "When others are fearful, I am greedy," but the premise of greed is that the asset isn't cooling off—if the fundamentals of the project collapse, being greedy is a death sentence.
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💡 Three steps to judge whether to bottom fish or cut losses.
1. Look at the volume-price relationship.
· Shrinking volume and falling prices → wash sale; expanding volume and falling prices → unloading.
· Example: Before the 90% plunge of the BNB chain meme coin PALU, whales controlled nearly 39% of the chips, and one sell-off led to a crash, which is unloading.
2. Look at key defensive positions.
· A wash sale doesn't break the 60-day moving average, unloading directly breaks through support.
· For instance, after XEC dropped from 3U to 2.8U, the weak rebound indicates the main player has fled.
3. Look at market sentiment cycles.
· Early in a bull market, plunges are often wash sales; towards the end of a bull market, plunges are often unloading.
· If the whole network is shouting "zeroing out," but the on-chain whales are bottom fishing, it could be an opportunity.
🚀 Be greedy when others are fearful.
· During a wash sale: Hold onto your chips, and even add positions in batches, as rebounds often occur within a day or two.
· During unloading: Cut losses decisively, don't cling to losses, and remember "capital is more important than fantasies."
· Always respect the market: Set stop-loss lines, and don't use leverage to gamble on reversals.
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#加密市场回调 #广场热度值助燃心仪代币 #暴跌暴涨 #抄底这4种100倍爆发潜力 #贪婪指数 The last truth:
The market won't deceive you; it's the interpreters of the market that deceive.
The money you can earn is essentially a compensation for your understanding—not a reward for luck.
Enhance your trading understanding!
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