Why does the crypto market always have 'rapid rises and slow declines'? This is the truth!
Many people think they can sell at the peak during a bull market and buy at the bottom during a bear market, but the reality is — you can never accurately judge when the peak or bottom is. The so-called 'selling at the top in a bull market and buying at the bottom in a bear market' is all hindsight; in real operations, it all comes down to luck.
1. The core rule of the crypto market: rapid rises, slow declines
Rapid rise: Bitcoin can surge from 15,000 to 100,000, and the actual period of explosive growth may only be a few days, with the rest of the time spent in fluctuation.
Slow decline: When a bear market arrives, the price declines like a frog in slowly boiling water, making you always feel 'it can go back up', but in the end, you get more and more trapped.
2. Why do prices rise quickly?
Once market sentiment is ignited, funds pour in wildly, and prices can double in just a few days. If you are not on the train, you simply cannot catch up. It's like a car that suddenly accelerates; no matter how fast you run, you can't catch up.
3. Why do prices decline slowly?
The dealer needs time to offload: Large funds cannot dump everything at once; otherwise, they won't get a good price, so they will raise the price while withdrawing, creating a false rebound to attract retail investors to take over.
Exploitation of human weaknesses: You bought 1 million, it rises to 3 million, and when it drops to 2.7 million, you think 'I’ll sell when it goes back to 3 million', but it ends up falling to 500,000, and you completely give up. The market relies on this psychology to slowly harvest you.
4. Why are newbies always trapped?
Insensitivity to declines: When a meme coin drops from 10 to 1, there will be countless small rebounds in the process, making you mistakenly believe 'the trend is still there', but when you look back, it has already halved and halved again.
Lack of discipline: You don’t sell when you make a profit, you stubbornly hold on when you incur losses, leading to a vicious cycle of 'not leaving when you profit, cutting losses when you lose'.
5. How to cope?
Don’t fantasize about precisely selling at the top and buying at the bottom: No one can predict the market; the only thing you can control is buying, selling, and your position.
Hold on during rises, and run fast during declines: Don’t be greedy during rapid rises, and stay alert during slow declines; if something feels off, immediately reduce your position.
Summary:
The rapid rises and slow declines in the crypto market are a conspiracy of human nature and capital. Rises make you unable to catch up, while declines make you reluctant to run. Once you see through this, you can avoid being harvested as chaff.
Remember, the market will not move according to your expectations, but you can act according to the market's rules.
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