Market tops are often accompanied by euphoria. When everyone is immersed in the joy of making money, the market is actually hiding a crisis.
Because once the last observer enters, there are no new funds to drive prices higher.
A healthy bull market requires the existence of divergence. When there are still people in the market hesitating, observing, or even shorting, it indicates that potential buying power still exists. When these shorts cover, they will become new momentum driving prices up.
There are three key indicators to determine a market top:
First, whether market sentiment is overly optimistic; second, whether investor positions are fully loaded; and third, whether technical indicators show divergence signals. When these three signals appear simultaneously, the risks are often the greatest.
The market bottom shows completely opposite characteristics. When even the most steadfast bulls begin to cut losses and leave the market, and when the market falls into extreme pessimism, it often signals a reversal.
The most dangerous thing in investing is the consistency of expectations. When everyone is bullish, the market is more likely to peak; when everyone is bearish, the market may likely bottom out. Maintaining independent thinking and not blindly following trends is key to long-term success.
For the upcoming layout direction, I will guide everyone to aim for the lucrative opportunities in the altcoin market, with an expected return of over 10 times being feasible. Like + comment, and let’s layout the entire bull market together!
Watch for today: ETHFI, OP, PNUT
