Today the crypto market surprises us with an uncommon phenomenon, but entirely possible: both the bulls and bears have been losing simultaneously. And although it sounds contradictory, it is not. The reason is clear and visible to those who know how to interpret the charts.
📉 We are in a compressed market.
Both assets that had strong rises and those that were in a downward trend have stopped. There are no large movements. The price has tightened, and the market is in a contraction phase:
🔹 Without strong volatility.
🔹 Without relevant breakouts.
🔹 Without clear direction.
This market compression prevents those going long (bulls) or short (bears) from gaining clear advantages. The result: losses on both sides or break-even exits (zero profit).
📊 Why does this happen?
Because the market, like a spring, sometimes compresses before exploding. This type of behavior is typical before large movements, whether up or down. The volume decreases, the candles shrink, and many get trapped waiting for a movement that has not yet arrived.
🧠 Lesson for traders:
1. Patience and reading the market.
Entering areas of indecision only burns capital and emotions.
2. Avoid trading without a clear direction.
False breakouts can quickly lead to losses.
3. Prepare for expansion.
This contraction is just the prelude to a big movement.
📌 NomadCrypto's advice:
Not always should you be trading. Sometimes, observing the market is trading intelligently. Remember that both bulls and bears can lose if there is no clear movement. The key is to recognize those moments and act strategically.
🔗 Do you want to learn more about how to identify these market phases and win when others lose?
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