The underlying logic of slow rises and slow drops in the cryptocurrency market: Understand it to avoid being a victim! Many newcomers in the crypto space are surely puzzled by slow rises and slow drops, so today we're going to break it down for everyone!
🎯Confusing Operation One: Slow Rise
1. Accumulating chips: The main force wants to accumulate at a low price. If they raise the price too quickly, the cost will be high. A slow rise is like boiling a frog in warm water, gradually pushing the price up without attracting too much market attention. For example, a coin originally priced at 10 yuan is slowly raised to 15 yuan, and during this process, many investors feel the rise is too slow and sell their chips, allowing the main force to quietly accumulate more.
2. Creating an illusion: Making investors feel that the price is steadily rising, creating a false impression of ‘guaranteed profits’. This will attract more people to chase and buy in, and as more people buy, the main force achieves its goal. Just like if you see a coin rising little by little every day, wouldn’t you think it has potential and be unable to resist buying?
🎯Confusing Operation Two: Slow Drop
1. Selling for profit: When the main force wants to sell, if they drop the price suddenly, they won't be able to sell their coins at a good price. A slow drop allows them to gradually sell their coins to those hopeful investors during the downward trend. For example, if the coin price starts at 100 yuan and slowly drops, on the first day it falls to 95 yuan, some investors may think the drop isn’t significant and might bounce back, so they buy in. As a result, if the price drops to 90 yuan the next day, the main force can gradually sell out their coins for profit.
2. Inducing panic: The gradual decline will increase psychological pressure on investors. Seeing the price continue to fall, many will panic and sell their coins. Once the panic reaches its peak, the main force can buy back these sold coins at a low price, completing a round of harvesting.
💡 In the crypto space, it is essential to learn more and not be misled by surface phenomena. Pay close attention to market dynamics and project fundamentals to avoid being led by the main force!