Is it okay to chase after a BTC breakout? Be careful of being tricked by a false breakout; first, look at the "large transactions."

CN
6 hours ago

When BTC breaks out, it’s easy to buy in at the most exciting moment.

The real trouble is that by the time you realize it’s a false breakout, the price has often already dropped back.

So when you see a breakout, don’t rush to place an order.

First, take a look at “large transactions.”

A long bullish candle does not prove the breakout is real

When BTC suddenly surges, a long upward bar appears on the K-line, which is commonly referred to as a “bullish candle.”

It looks very strong, but it only indicates that: the price is rising sharply. It does not mean that large funds are still buying continuously.

At this time, you can look at large transactions—in simple terms, it means taking out and looking at actual transactions with relatively large amounts in the market.

In AiCoin, it will be directly displayed on the K-line:

🟢 Green circle: large active buy orders

🔴 Red circle: large active sell orders

The larger the circle: the larger the transaction amount

Note that what you see here is the real money that has already been transacted, not the orders hung on the order book that have not yet been executed.

So when BTC breaks through key levels, don’t just look at the price; check if there’s large capital buying along.

The distinction between a real breakout and a false breakout may be here

Suppose BTC has surpassed previous highs that had not broken through.

False breakout: The price surges quickly, but there are no obvious large buy orders following near the breakout; then, large sell orders appear at the high, and the price drops back to the previous range.

Relatively healthy breakout: Concurrently with the breakout, a series of relatively large active buy orders appear, and the trading volume also significantly increases, with the price stabilizing above the breakout level afterward.

The latter at least indicates: the price is rising, and funds are following.

Of course, large buy orders are not for you to follow directly; they are more suitable for verifying the quality of the breakout.

How big a large order is, matters less than where it appears

The same large transaction appearing in different positions has completely different meanings.

  • Large buy orders at breakout locations → See if funds are following the breakout

  • Large buy orders at key support → See if there’s capital support

  • Large sell orders at high levels after continuous rises → See if there’s capital cashing out

So you can remember:

First check position → then check direction → finally check price reaction.

For example, when BTC falls to a position that has previously halted declines multiple times, and suddenly several large active buy orders appear.

Don’t rush to shout “the main force is bottom fishing,” continue to observe whether the price stops falling after the buying?

If large orders continue to appear and the price keeps dropping, then these buy orders haven’t changed direction for now.

Large orders themselves are not the answer; the price reaction to large orders is.

How to access in AiCoin?

Large transactions are one of the features for AiCoin PRO members, and the access path is very simple:

Open AiCoin “Market Page” (K-line) → top left corner “Indicator” → search “Large Transactions” → check “Display on K-line.”

If there’s too much information on the screen, you can raise the amount threshold to only see the large orders you care about.

If it’s your first time using it, you don’t need to study it too complicatedly.

Look at a few segments of completed market replay: Where did the large orders appear? Were they buying or selling? How did the price move after they appeared?

After watching a few times, you can gradually build a feeling.

If you can’t find the indicator or aren’t sure how to set it up, feel free to contact customer service for assistance.

Conclusion: Remember these 5 steps, and you won’t panic during breakouts

① Look at the price: Is it a real breakout?

② Look at large transactions: Is there capital following?

③ Look at trading volume: Is the breakout accompanied by increased volume?

④ Look at positions: Are derivatives funds collaborating?

⑤ Look at the results: Did it stabilize after the breakout?

The final step is particularly important.

Check the price for breakouts, and confirm breakouts with funds.

If you typically track BTC and ETH short-term, you can add large transactions as a tool for observation.

It’s not about directly judging buys and sells; rather, it helps you to observe another layer of capital movement. This is also one of the practical features of AiCoin PRO.

Don’t rush to use it to predict the next K-line; first, replay a few authentic market segments to see where large capital acts and how the price moves thereafter.

If you want to communicate about market trends in real-time or get more AiCoin PRO benefits and activity information, you can also join our community:

https://www.aicoin.com/link/chat?cid=gmLgwvKD1

Additionally, if you also have trading needs, you can register through the following Binance referral link:

👉 https://jump.do/zh-Hans/xlink-proxy?id=3

(Referral code: aicoin668, enjoy a 10% rebate)

Join our community, let’s discuss together and become stronger!

Official Telegram community: t.me/aicoincn

AiCoin Chinese Twitter: https://x.com/AiCoinzh

The above content is for market observation and tool usage reference only and does not constitute any investment advice. Cryptocurrency assets are highly volatile, please independently assess based on your own risk tolerance.

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