📉 Fast Decline, Slow Recovery – A Market Reality 📈
One of the most common patterns in crypto markets is the sharp, fast decline followed by a slow, steady recovery.
Why does this happen?
Panic Selling: When prices drop suddenly, fear takes over and traders rush to exit positions.
Liquidity Shocks: Big sell orders or market news can trigger a chain reaction of declines.
Gradual Confidence Return: Unlike the fall, recovery takes time as buyers slowly regain trust and re-enter the market.
This is why we often see a V-shape crash but a U-shape recovery. 🚀
👉 Smart traders use this knowledge to spot buying opportunities during the panic and stay patient during the recovery phase.
Do you buy during sharp declines, or wait for stability before entering again?