Decoding the Three "Passwords" of Crypto Cash Flow: Know Early to Avoid 80% of Market Traps

After analyzing crypto for three years, I realize a truth: K-line is not meant for reading trends — but for mainly reading your emotions. Those stop-loss triggers, support breaks followed by quick rebounds, sideways “death traps”… all are pre-written scenarios for inexperienced traders. But no matter how skillful, large capital always leaves traces in price – volume – behavior. Below are the three most important “terminologies” I’ve derived after risking more than 20 times to peak and cut bottoms. Understanding these three things will help you avoid most unreasonable market wipes and preserve your capital before thinking about profit.

1. “Piercing Support and Rebounding” = Main Players Accumulating Cheap Assets This is a classic crypto clearing game: A strong red candle or a wick piercing through (flash crash / long wick) across a critical support zone. Retail traders see this and immediately think “support broken,” panic and sell off. But just a few hours later, the price pulls back to the old support zone, even closing above it. The next day, it continues to rise. Accurate Recognition Rules: → 4H is the standard confirmation frame Price breaks support but does not stay below for more than 2 four-hour candles. Crypto is volatile, so the 1H frame often creates noise. → At support break: volume surges This is when the main players “threaten” the market with a few large sell-offs. → When rebounding: volume drops again Because they only need a little buying pressure to push the price up, retail traders sell off heavily, making it easy for them to scoop up assets. → If the overall market is stable but an individual coin suddenly dips → 90% is a washout There was a DeFi coin at the end of last November: a flash crash below 1.2U, many panic-sell. But just two hours later, it recovered to 1.3U, and in the next three days, it rose 40%. Lesson: Main players only fear you not panicking. The more you panic, the more you sell when they are accumulating.
2. “Price Moves One Way, Volume Moves the Opposite” = Imminent Reversal Signal This is the clearest indicator of the intentions of the big money. K-line can be drawn, but volume cannot be hidden. Two Most Notable Types: ▶ Type 1: Price rises – Volume decreases (hidden peak) New highs are formed But volume declines day by day, buying power diminishes → Main players are quietly unloading assets onto FOMO investors. If you see three consecutive bullish candles with decreasing volume, prepare to exit. I once fell for a famous L1 coin: price rose to 2.8U, but volume was 60% below previous peak. Hesitating to sell, two days later it plummeted 27% in reverse. ▶ Type 2: Price sideways – Volume gradually increases (accumulation and compression) Sideways movement for 7–14 days Volume steadily rising → This is when main players secretly scoop up small orders. When volume increases consistently but price doesn’t drop, it’s a sign of “preparation for a breakout.” Once breakout occurs, a strong surge follows.
3. “Sideways at the Top” = Main Players Distributing & Finding a Load Bearer Many think sideways means “gather strength for further rise,” but in crypto, sideways at high levels is a preparation step for a sharp plunge. Distinguish two types of sideways to avoid traps: ✔ Bottom sideways (good – accumulation):
   Lasts over a month
   Slight increase in volume
   Red candles are quickly absorbed by green candles
   → Main players are accumulating assets, preparing for a breakout. ✔ Top sideways (bad – distribution):
   Price has doubled or tripled
   Volume gradually declines
   Long red candles, short green candles
   Unusual increase in funding/long positions → Main players are selling off, waiting for retail to enter before pushing down. Breaking below the bottom of the sideways zone → very likely to fall sharply, giving no time to react. Conclusion: To Win, Don’t Read K-line with Emotions — Do It with the Mindset of “Decoding the Money Flow” K-line is just a visual. Volume and price behavior are the real signals. You don’t need to know 100 candle patterns or memorize 20 indicators. Just understand: When are they accumulating When are they unloading When are they threatening you to sell cheap And when do they need you to FOMO buy the top Mastering these three “terminologies” will help you avoid most psychological traps in crypto — and from there, preserve your capital, maintain your mindset, and go the long way. $ETH