Everyone in the crypto world knows—technical analysis may seem complicated, but its core logic is just a few principles. Mastering these rules can help you avoid many detours.

**Rule 1: After a sharp rise, a bearish grinding phase—whales are accumulating**

The price surges rapidly, then enters a repeated oscillation and decline phase. Many think the trend is about to end. Actually, no—this is the whales collecting chips at low prices. What is the real signal of distribution? A big downtrend following a volume surge and rapid increase, then a large bearish candle drops down. Most of the other oscillations are just acting.

**Rule 2: After a sharp decline, a slow rebound and bottoming—beware of the "gentle trap"**

After a rapid drop, instead of a quick rebound, the price slowly declines and consolidates. It looks like it’s bottoming out, but in fact, it’s a trap set by the whales. Many people can’t resist the temptation to buy the dip, only to become the bagholders.

**Rule 3: Diminishing volume at the top—more dangerous than a crash**

A huge volume at a high level indicates retail investors are still following the trend, and there may still be room for movement. But if the volume suddenly dries up at the high, that’s a warning—avalanches often happen during the quietest moments. Exiting immediately is more important than anything.

**Rule 4: Volume breakout at the bottom—true signal**

Seeing a volume-increasing bullish candle makes you think the bottom is in? That’s probably a trap set by the whales. A truly reliable bottom signal is: after a period of decreasing volume oscillation, a sustained volume breakout above the consolidation zone. That’s the real rally signal.

**Rule 5: The essence of trading crypto is managing your mindset—volume is more honest than price**

K-line patterns are just reflections of market sentiment; trading volume is the real force behind them. No matter how perfect the technical pattern, if your mindset collapses, no amount of capital can prevent losses. The market is always there, but if your mental state isn’t stable, everything is pointless.

There are no myths in the crypto world—only the game and luck of the participants. Following these rules can help you survive longer and earn steadily.