In the cryptocurrency market, the big dump in prices often puts investors in a dilemma, making it difficult to distinguish between a washout and selling off. As an investor who has experienced the ups and downs of the market, I deeply understand this feeling of confusion. Let me share some personal experiences and insights, hoping to help everyone make wiser decisions when facing market fluctuations.

Firstly, observing the changes in trading volume is a key indicator. Generally, when the price falls while the trading volume shrinks, it is likely a washout behavior. For example, if MATIC drops from $1.5 to $1.2, but the trading volume decreases by half compared to the previous day, it is very likely a "fake drop". On the contrary, if the price falls accompanied by a significant increase in trading volume, it may indicate that the main force is withdrawing, and one should be especially vigilant at this time.

Secondly, it is also important to pay attention to key support levels. During the washout process, prices usually do not break through key technical support lines. For example, when Bitcoin falls to 100,000, if it can gain support at the 60-day moving average, even if it briefly breaks below, it often quickly rebounds, which usually indicates a washout. However, if the price continues to break below important support levels without signs of recovery, it is likely to be a sell-off.

Finally, the speed and strength of the rebound are also important criteria for judgment. After a healthy consolidation, prices often rebound rapidly, much like a slingshot. If the rebound is weak, slowly climbs and then quickly falls back, it may signal the selling of assets.

Remember, it is crucial to stay calm and rational in the cryptocurrency market. Do not rush to conclusions, but carefully analyze the candlestick charts, observe the volume-price relationship, and assess the strength of the support levels. Only through comprehensive analysis can we better understand market trends and avoid making incorrect judgments during a big dump.

These insights come from my years of experience in the market. I hope these suggestions can help everyone better protect their investments when facing market fluctuations. Remember, in the cryptocurrency market, the biggest fear is not price volatility, but losing your sanity amidst the fluctuations. Stay clear-headed, do your analysis, and I believe you can find your footing in this market full of opportunities and challenges.