Midday Market Scan: Rapid Rise Conceals Hidden Risks, Volume-Price Divergence Calls for Caution

After reviewing the morning market, several technical signals worth noting have emerged. These details often determine the subsequent trend:

**1. Gap Not Filled — Previous Resistance Still Exists**

This morning's sharp gap up has not been filled. Interestingly, gaps on other major cryptocurrencies' daily charts have mostly been filled, leaving only the main index gap unclosed. Don't underestimate this detail; it often becomes a resistance level for subsequent rebounds.

**2. Leading Sector's Unilateral Surge — Old Trick of诱多**

The typical weight-driven rally was evident this morning, with major core sectors taking turns boosting the overall index, creating a false appearance of broad-market gains. The easiest trap in such a market: major players lift the leaders to attract follow-on buying while secretly reducing their positions.

**3. Target Achieved — Prepare for Defense at Peak**

The previous price target has already been reached; further gains are beyond expectations. At this point, be especially alert for any downward adjustments that could occur at any time.

**4. The Double-Edged Sword of Volume**

Trading volume in both markets surged significantly this morning, increasing by about 150 billion compared to the same period yesterday. If volume increases by another 100 billion in the afternoon, the total daily volume may approach a key psychological threshold. Remember this rule: massive volume often signals a top, and after a top, a correction usually follows.

**5. Hidden Divergence Between Index and Individual Stocks**

The most warning sign appeared — the high point of the average price of individual coins occurred earlier than the index high. Although the index continued to rise, the average price of individual coins started to decline. This is a classic "lifting the index to kill individual stocks" phenomenon, indicating diminishing incremental funds and increasing profit-taking from existing holdings.

**Signs of Accelerating Trend Risks**

Compared to previous movements, the current upward speed is clearly accelerating. Such rapid ascent often signals an imminent short-term top. Just as a sharp decline can form a short-term bottom, a rapid rise can produce a short-term top.

**Trading Recommendations**

The most important thing now is a clear head. While continued gains are exciting, the key principle at this stage is: the higher it goes, the more you should sell. It is advisable to take profits in stages, gradually reduce positions, and move some gains into safer assets. Keep a small remaining position to attempt capturing the extreme high.

For medium-term investors, two critical points should be monitored: one, when the price approaches a key resistance level; two, when the overall market trading volume surpasses a psychological threshold. Triggering either signals the start of a plan to reduce holdings.

Of course, these are based on current trend assumptions. The market is always unpredictable, and proactively avoiding major corrections is better than being caught at the top.