In the crypto market, many people are often overwhelmed and panicked by the candlestick patterns of mainstream coins. chasing highs and getting trapped, missing out and regretting, buying and selling based on intuition... these are common "traps." The key issue is not how difficult the crypto space itself is, but that most people lack a systematic judgment framework.

After 8 years of market analysis, I discovered a pattern: those who consistently make profits never rely solely on candlestick patterns or the calls of a big influencer. Instead, they use a three-dimensional judgment model based on "funding trends, project fundamentals, and market sentiment." When these three dimensions point in the same direction, the win rate is significantly higher.

**First Dimension: Funding Flow**

Where the funds go, the market follows. This is the most direct signal. Use funding tracking tools to observe two indicators: first, large fund net inflows/outflows. If a mainstream coin experiences continuous large net inflows for over 3 days, with trading volume increasing simultaneously, it’s basically a pre-launch signal. Second, changes in exchange address holdings. What does it mean if whale addresses significantly reduce their holdings over a period? Selling pressure may have been released. Conversely, continuous outflows from exchanges to self-custody wallets often indicate an increasing willingness for long-term holding.

**Second Dimension: Project Fundamentals**

Don’t just look at the token price; see what the project has been doing recently. Has it updated features? What’s the user activity level? Is the ecosystem application growing or declining? If a major coin’s ecosystem has recent significant progress and the market hasn’t fully reacted yet, the relative asset comparison can reveal undervalued potential. Conversely, if there’s only hype without real progress, the risk is higher.

**Third Dimension: Market Sentiment Cycle**

Crypto market sentiment is very volatile. During fear, funds concentrate in safe assets; during greed, everything is fair game. Tracking indicators like the Fear & Greed Index, on-chain activity, and new address counts can reveal the current market mindset. When sentiment is euphoric at a high, it’s often a risk signal; at the bottom, when everyone is anxious, there may be opportunities.

Using these three dimensions together can help you avoid many traps.