Let’s combine 'three-layer thinking' and 'market efficiency' to break it down for everyone. What stage is the crypto market in right now? A relatively efficient market. Why? Because there are a lot of retail investors and small-to-medium institutions. What’s the issue with having so many retail investors? Most people trading are [noobs]. They rely on 'first-layer thinking' tools like MACD, support levels, Elliott Wave Theory, Fibonacci, candlestick patterns, RSI, etc., to trade. And because there are so many [noobs] using 'first-layer thinking,' the market ends up being dominated by 'first-layer thinking.' At this point, those catchy 'first-layer' trading rules work pretty well. For example: - Volume breakout ➡ Price rises, trading volume surges ➡ Breakout at the bottom, main upward trend begins - Volume drop ➡ Price falls, trading volume increases ➡ Breakdown at the top, trend weakens - Low-volume rise ➡ Price rises, trading volume decreases ➡ Continuation of uptrend, strong consolidation - Low-volume drop ➡ Price falls, trading volume shrinks ➡ Bottom testing, weak downward drift But, these so-called market rules are almost [useless] in an 'inefficient market.' Summary: Inefficient market = battling whales ------------ Efficient market = dominated by retail investors Three-layer thinking = clear understanding of participants ------------ First-layer thinking = chaotic participants