Recently, many friends have been asking: Why does the crypto market often experience sudden spikes and drops? Today, let’s discuss this in the most relatable way!

Remember these five key points and you'll understand:

Big Players' ATM: Those who hold tens of thousands of Bitcoins (commonly known as 'whales') secretly sell off after a price surge. It’s like a supermarket having a limited-time sale; they first raise the price to attract you in, and once the unsuspecting buyers take the bait, they immediately cash out and escape.

Leverage Chain Reaction: Many people like to use 20x or 50x leverage, but a slight market fluctuation of 3% can trigger a forced liquidation. It’s like building with blocks; if the bottom block is removed, the entire tower collapses instantly.

Fake Moves to Deceive: Market makers will suddenly drive up prices to break through previous highs, and as soon as everyone shouts that the bull market has returned and chases in, they immediately turn around and crash the market. This is a classic bull trap.

News Ambush: Even if it’s a fake news story, like an exchange being investigated, it can cause instant panic in the market. It’s like someone suddenly shouting that the teacher is coming into the classroom; everyone will panic and scatter.

Resistance Level Curse: When the price of a coin rises to a historical high, many seasoned traders will place sell orders in advance. It’s like climbing a mountain; when the wind suddenly picks up at a certain height, everyone chooses to descend first.

Big G's Survival Rules:

Setting stop-losses is like fastening your seatbelt; don’t wait until the crash to regret it.

When you see a spike, don’t rush in; first consider if it’s bait.

Take profits in time; don’t always think you can eat it all at once.

Remember, there are no forever one-way markets in crypto. Staying calm is essential to surviving the ups and downs longer; we need to be surfing experts, not sitting ducks getting drowned by the waves!

If you want to delve into the crypto world but can’t find a direction, and want to quickly get up to speed with the information gap, click on my profile to follow my introduction and gain first-hand insights and in-depth analysis!