Having spent years navigating the Crypto Assets market, I have witnessed countless investors suffer heavy losses due to their inability to distinguish between Whipsaw and dump. Recently, an investor asked me whether they should perform Margin Replenishment when the coin price falls by 30%. By analyzing the Candlestick Chart, I immediately realized that this was a typical dump trap, rather than a Whipsaw opportunity.

Recently, a certain Crypto Asset soared from $2 to $5 before starting to pull back. Many retail investors mistakenly believed this was a Whipsaw and increased their positions, ultimately suffering painful exits. In reality, the signs of a dump were very clear: the trading volume surged at a high level while the price stagnated, the volume doubled but the coin price struggled to break new highs; subsequently, there was a cliff-like drop to $3, with no significant rebound during this period; although there was a tempting rebound after the fall, the trading volume shrank, which is precisely the trap to attract bag holders.

The real whipsaw behavior, as I analyzed in the GAMA case before, presents different characteristics: trading volume decreases during the fall, increases during the rebound, and key support levels are solid. This indicates that the main funds are clearing floating chips rather than intending to trap investors.

To survive in the market, it is crucial to remember these three key signals: First, a decrease in trading volume during a fall and an increase during a rise indicates a whipsaw; an increase in trading volume during a fall and a decrease during a rebound indicates a dump; Second, a whipsaw will maintain key price levels, while a dump will directly breach support levels; Third, a whipsaw typically manifests as a slow decline followed by a rapid surge, while a dump is characterized by a rapid decline accompanied by weak rebounds.

In the Crypto Assets market, investors are either continuously harvested or learn to recognize market trends and align with the main players. The market never shows mercy to the ignorant; investors who do not understand how to interpret the Candlestick language are doomed to pay tuition repeatedly. I once groped in the darkness of the market and paid a huge price. But now, I have mastered the operational rules of the market and am willing to share these valuable experiences with everyone, helping more investors move steadily forward in this market full of opportunities and challenges.