Today, the crypto market staged a thriller. Near the close this morning, mainstream cryptocurrencies suddenly plunged over 45 degrees, then started to rebound in the afternoon. Behind this intense volatility, there is both a surge in profit-taking and signs of major players conducting massive shakeouts.

From a technical perspective, the major indices continued to close in the green, with eight consecutive days of gains already achieved, and ten days approaching. Today’s trading volume increased to 237.2 billion USDT, once again surpassing the 2 trillion mark, but the real body of the candlestick is very small—this is a signal. The price has broken through the upper Bollinger Band for two consecutive days; if it falls below the upper band, the middle band will become the next support level. The KDJ indicator has been dulled for four days and will reach its limit by next Monday. More painfully, the CCI indicator has not kept pace, indicating that active buying is actually limited. To put it plainly, this wave of震荡 is already telling everyone: the market is overbought, and a pullback could start at any time—this is inevitable.

How big are the disagreements in the market? Just look at the data—today, 3,414 cryptocurrencies declined, but 92 hit the daily limit up, and only 3 hit the daily limit down. This shows that many projects are still in the rebound or surge phase; traders should not be too greedy. After a big rise, take profits in batches; don’t chase.

The Micro Coin Index best illustrates the issue. While other indices are turning red, it is still falling, which exposes serious short-term overbought conditions. The market indeed needs a genuine pullback to repair overbought indicators.

There are three trading days left before the end of the year, and the probability of a rise followed by a fall is high. Manage your positions well, set proper take-profit and stop-loss levels, and don’t let profits evaporate in a pullback. For those potential coins that haven’t yet surged or broken out, you might want to pay attention.