This week's market shows significant differentiation: In the first half, the market was in a sideways consolidation state, with prices fluctuating within a narrow range, and both bulls and bears were in a stalemate, with no clear trend direction; in the second half, Bitcoin broke the consolidation pattern and continuously surpassed previous highs, showing a strong upward momentum.
This market caused heavy losses for two types of short sellers: one type held onto their positions due to an unwillingness to accept small losses during the initial pullback and did not stop loss in time, ultimately getting trapped as prices rose; the other type, influenced by emotions, guessed the top subjectively and increased their positions against the trend, leading to expanded losses. Although the reasons for their mistakes were different, both ended in losses.
This teaches us that emotional management in trading is crucial; we must remain calm and rational. This is key to controlling risk and protecting positions, helping us avoid fatal mistakes amid changing trends.
