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The ZEC in the past couple of days has been extremely "steady." The price has been fluctuating between 440 and 460, going up and down like a straight line. The Trading Volume has also been sluggish, making it look like the market has suddenly fallen asleep.
But experienced traders know that this kind of sideways movement is often the most oppressive calm before the storm.
Looking at the market, the price is stuck around 446, and the so-called support below, such as MA7 and MA25, has already been left behind. It's like a person standing on thin ice, looking down at something, but it's actually hanging in mid-air. The worst part is that there are hardly any decent buy orders below, just scattered small orders from retail investors propping it up. What does this indicate? It indicates that the real "chives" are either already trapped and not moving, or still watching from the sidelines, completely afraid to reach out and catch.
If no one buys, the price won't go up. So why do the market makers bother to maintain this sideways movement instead of just crashing it down? That's their cunning.
Sideways is a psychological tactic. There are two purposes:
First, consume the patience of the bulls. Watching the market not rise day after day, those who were previously bullish will slowly start to doubt themselves and may ultimately choose to exit with a small loss, contributing chips to the market manipulators.
Second, create a false sense of security. Let some people feel that "it can't go down any further, this is the bottom," and then they can't help but rush in to "buy the dip." Once this group of people comes in, the doge master will just happen to hand over their goods to them.
Looking at those so-called "positive news," such as whales accumulating and institutions discussing ETFs, they all seem a bit pale in the face of sideways movement. The market makers can easily release positive news to attract attention while quietly setting up short positions in the market. When everyone lets their guard down, thinking everything is fine, a big bearish candle can directly break through all support, and those who just rushed in as the "bottom-fishing army" will instantly become trapped, buried halfway up the mountain.
So, having understood the "sideways-holding-sweeping" method of the dog traders, what should we do?
1. Do not participate in sideways movement. Remember, when sideways movement occurs after a clear downtrend or a prolonged stagnation at a high level, it is likely a continuation of the downward trend. It is better to miss out than to make a wrong move. Do not let your hands get itchy and gamble on that "breakout".
2. Look at the volume, but more importantly, look at the price. A sideways movement without a price increase is just playing tricks. If there is no volume below, it indicates that there is no real buying support, making this platform extremely fragile.
3. Set a clear stop-loss line. If you are already in the trade, set the stop-loss a little lower than the lower edge of this consolidation zone. Once it breaks down with increased volume, do not hesitate, do not fantasize, leave immediately. Preserve your capital to have the next opportunity.
4. Be patient and wait for the real opportunity. After the market is manipulated, there is often a panic sell-off, which is when we calmly observe and look for truly undervalued opportunities. Let the bullets fly for a while longer. $ZEC #加密市场观察