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In the field of Crypto Assets trading, accurately understanding market dynamics is crucial. Many investors often confuse the concepts of stopping the fall and reversal; this article will delve into their differences and meanings.
A stop in the fall does not mean an immediate rise. After a round of decline ends, the market usually enters a consolidation period. During this phase, the market may continue to fall or start to rise, and the key lies in analyzing the comparison of bullish and bearish forces within the consolidation range. By carefully observing, investors can predict future trends.
A reversal is a more positive market reaction after a fall has stopped. When bullish forces dominate, the market begins to rise significantly. To determine whether a reversal has occurred, it is necessary to comprehensively consider factors such as the strength of the stop-loss signal, the characteristics of the pattern, changes in trading volume, and the price's position.
It is worth noting that the stop fall and reversal are related, but they belong to different market conditions, and their judgment basis and influencing factors are also different. Investors need to avoid confusing the two.
Taking the latest 12-hour chart of Ethereum as an example, we can clearly identify a range of fluctuations. Currently, this wave of falling trend has stopped, mainly based on the following observations:
1. The consecutive appearance of two hammer candlestick patterns usually indicates that the falling trend is about to end.
2. The price reaches important support levels, including previous lows and the middle band of the Bollinger Bands.
3. Most candlesticks have obvious lower shadows, indicating that there is buying pressure at lower levels.
4. During the fall, the bearish candlestick body is relatively small and there is no significant increase in volume, indicating that selling pressure is limited.
5. Continuous stop-loss signals appear at key support levels, reflecting that the bulls are gathering strength.
Based on the above analysis, we can conclude that the adjustment of Ethereum in the 12-hour timeframe has ended, forming a new oscillation range. In the short term, the price is likely to fluctuate within this range.
For Crypto Assets investors, mastering these market analysis techniques is crucial. They not only help in more accurately assessing market trends but also assist in formulating more effective trading strategies. However, considering the high volatility of the Crypto Assets market, investors should still proceed with caution and manage risks appropriately.