Many retail investors have been stuck for a long time. Finally, when the price of Ethereum rises to the cost line, they panic and decisively close their positions, not realizing that this sale might mean missing out on subsequent gains, like getting off a roller coaster midway and having to watch others reach the top.
Some retail investors have already made profits in the rising market. When the market is sideways, they start to think: "It has risen so much, it should pull back. I'll sell first and buy back at a lower price, and I can also short and make a profit." As a result, they sold Ethereum and opened short positions, but the market often does not meet expectations; instead of pulling back, it continues to rise, leading to losses on both sides.
Some retail investors opened short positions, and when the market rose, they not only did not close their positions but also comforted themselves: "It has risen so much, how much more can it rise? I’ll add margin and hold on." Ignoring market trends and blindly holding on, if the market continues to rise, their margin will be quickly liquidated, leaving them regretting their decisions.
Cutting losses at lows and blindly shorting
Retail investors who previously cut losses at lows now see the price of Ethereum soaring and regret: "I was so foolish to cut losses before; I didn’t get any of the gains! I'm not convinced!" To prove they were not wrong, they recklessly open short positions, completely disregarding the risks, resulting in even greater losses.
The market makers are always calculating. Over the past six months, they have manipulated the market to "wash" retail investors while collecting a large amount of low-priced chips. Once the timing is right, they quickly push the prices up, not giving retail investors time to react, thus avoiding increasing the cost of the push.
At this time, the market makers will keep the market sideways or make slight adjustments, giving retail investors some "room to maneuver." Retail investors make wrong decisions based on the mindset described above, continuously accumulating fuel for shorting.
When the market makers feel that the selling pressure has been released and the shorting power has accumulated, they will once again exert force to drive the prices up and will never allow the market to significantly pull back. They know very well that retail investors are looking forward to a pullback to enter the market. If there is a real pullback, retail investors will enter, increasing the market makers' push costs; such a loss-making deal is not something market makers would engage in.
The market changes every day; don’t get too tight with your mindset. If you always feel like you're a step behind or are disturbed by market noise, feel free to chat.
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