Why do most coins decline slowly while they tend to rise sharply?
This is because declines in the crypto market are very slow; the situation may be like this: you buy 1 million, it rises to 3 million, and finally drops to 2.7 million. You don't want to sell, thinking of 3 million, then it rebounds to 2.8 million, but then continues to drop to 2.5 million. You want to sell at 2.8 million but it drops directly to 2 million. You decide not to sell, and ultimately it goes from 2 million to 1 million, then rises to 1.5 million, and you can only pretend not to see it. 1 million becomes 500,000, then rises to 700,000 and you're already helpless, thinking it might as well be left as is. During this process, with every rebound, you hope to return to the original price, but the market is no longer the same market.
The reason the market does not drop quickly is that the market makers, if they sell off all at once, won't get a good price. Their volume is too large, so they can only sell slowly, using every rebound to offload their holdings amidst various positive news.
The occurrence of catastrophic market conditions is actually caused by a chain reaction. This is an opportunity to pick up money; after a sharp decline, it won't be long before there's a rebound, and many daring individuals will go for the emotional money.
Therefore, declines can be very tormenting, especially for altcoins. If there’s a direct panic sell-off, you might really be scared into cutting your losses. However, in reality, they rarely experience a rapid crash; it’s always a decline followed by a rise.
Price fluctuations can pull you back and forth; for example, if the price is 10 and after six months it suddenly drops to 1, that's a 90% decline. During this process, it seems like something is obscuring your vision, and you don't even realize it.
Actually, you just haven't trained yourself deliberately, making it hard to perceive the trend of price declines. This is the fundamental reason why newcomers fail to make money in their first cycle.
The market operates according to human nature; it’s all about human nature. People long for rapid increases, so the market inadvertently rises quickly. People desire slow declines, wanting rebounds and returns, so it declines very slowly.
However, those who see through human nature remain calm in the face of rapid rises and are vigilant during slow declines; at the first sign of trouble, they’ve already exited.
Those who remain are merely the bag holders, and they still hope that the next wave of their altcoins can rise again, which in fact is already impossible.
The market has already completed the transfer of wealth through a wave of market movement. Moreover, this process is quiet. Only those who have trained themselves deliberately can feel it and make money from the bubbles.
I've finished writing, keep going! I am a cryptocurrency massage therapist, a veteran in the crypto space focused on arbitrage and holding coins.
If you are a newbie looking to delve into the crypto space and want to get started quickly, you can comment '168'.
I sincerely suggest everyone learn about the cryptocurrency space; its value far exceeds merely the profits from simple cryptocurrencies, and it enhances our cognitive abilities. Regardless of whether you are directly engaged in crypto-related work, exploring this field can help broaden your horizons, promote wealth growth, and bring positive impacts to your life.
Directly speaking about cryptocurrency trading secrets.
Six Don'ts, Four Hold Ons:
Six Don'ts:
1. For coins that are continuously declining and have not stabilized at the 60-day moving average, let’s not touch them for now. Follow the trend; for coins that are continuously falling, let’s wait and see when they turn around before deciding.
2. Don't buy coins that receive good news after rising. When good news arrives, it often serves as a signal to sell; for coins that have already risen, the main force may be looking to collect profits.
3. Avoid chasing coins that rise too sharply and are far from the 5-day moving average. Coins that rise too quickly carry high risks, and chasing them can easily trap you.
4. Don’t take risks with coins that suddenly jump up at high levels. A gap up at a high position poses significant risks; it could mean the main force is quietly offloading.
5. For coins with a turnover rate exceeding 30%, let’s steer clear for now. A high turnover rate indicates fierce battles between bulls and bears; let’s avoid this volatile market.
6. Don't be fooled by coins that are struggling in a bad environment. Coins that are being forcibly pulled up in a poor market are likely using 'smoke and mirrors'.
Four Hold Ons:
1. Hold onto coins with an RSI between 50 and 80. An RSI in the upper middle indicates that the coin still has strength; holding onto it can yield more profit.
2. Don't rush to sell coins that have jumped up from a low position. A gap up indicates strong bullish momentum; see if it can continue to rise.
3. Tighten your grip on coins with an upward trend. Follow the trend; for coins in a rising market, the longer you hold, the more you earn.
4. Don't easily sell coins that have all their chips concentrated in one place. When the chips are all stacked together, the main force may still want to push the price higher; waiting for a high point to sell isn’t too late.
Cryptocurrency Trading Insights: When it comes to trading cryptocurrencies, you must adhere to the rules and not rely on your feelings.
Understanding market trends is much more reliable than guessing randomly!