The Fed FOMC meeting's rate cut expectations continue to heat up, and the crypto market is rebounding accordingly. In such a market environment, many people find themselves still chasing rallies and selling dips, while their accounts show no improvement. Instead of blaming the market or luck, it's better to learn how to interpret the true language of the market.

**The Battle Between Illusion and Reality**

Price movements in the crypto space may seem chaotic, but they are actually traceable. Every action by the major players leaves a mark on the candlestick charts — the key is whether you can interpret them. Many losses are ultimately due to being deceived by surface phenomena.

**Signal One: Sideways Trap — The Invisible Washout Technique**

Prices oscillate within a certain range, appearing calm on the surface, but in reality, the main players are quietly changing the distribution of chips. How to identify this?

During sideways consolidation, trading volume continuously shrinks, and the price consistently stays above support levels, indicating no one is truly exiting — this is a sign of concentrated chips. Conversely, if negative news pushes the price down but does not break through key structures, this often is a pretext for the main players to create panic.

Take a popular coin as an example: it traded sideways around 0.78 for a week, then a bullish candle broke through 0.82, and the next day, it surged straight to 1.1. The apparent sudden spike is actually premeditated — the sideways movement that week was a preparation for the rally.

**Signal Two: Breakout Fakeout — A False Signal Before Distribution**

When the price breaks below support, retail traders often cut losses, which may signal a reversal. For a significant decline, the main players won't just play along; if they do, it indicates a bigger move is coming.

How to identify? After breaking support, if the price quickly recovers key levels, and a volume increase on a failed break accompanied by a reversal candle pattern (like a engulfing or shooting star), these are common setups before a rally. Remember: if after breaking support there is no high volume of selling, but instead it is bought back by big orders the next day, it indicates the main players are testing support strength and preparing to activate a move.

**Signal Three: Top Signal — The Invisible Indicator of Distribution**

When a coin's price reaches a high and then starts to stagnate, this isn't just consolidation — it’s chips transferring hands. When you see consecutive upper shadows with increasing volume, or candlestick patterns like "Dark Cloud Cover" or "Three Black Crows," beware.

MACD divergence combined with waning bullish momentum often signals an impending reversal. A clear example from May 2024: a certain coin failed to make a new high over three days, forming a double top with a bearish engulfing candle, followed by a four-day drop of over 38%. This decline wasn't accidental; the candlestick signals had already warned.

**Market Rhythm Based on Fed Expectations**

Currently, the rising expectation of Fed rate cuts injects liquidity prospects into the crypto market, but it also means that the main players will accelerate their layout and distribution. Recognizing these three signals allows you to pay less tuition in the rebound phase.

Candlesticks record the behavior of market participants. As long as you're willing to review and analyze them, you can see the true intentions of the big players. Instead of frequent trading, it's better to spend time learning how to interpret the market's language.