The "love battle" at the end of the bull market in the cryptocurrency circle is an extremely dangerous behavior. Investors need to be alert to signs of market overheating, take profits in a timely manner, and shift to defensive strategies to avoid losses of profits or even principal due to greed. The following is a detailed analysis of the characteristics of the end of the bull market and response strategies:
1. Typical characteristics of the end of a bull market
Market sentiment is extremely optimistic
Investors generally believe that "prices will never fall," and even comments like "this time it's different" have emerged. This excessive confidence often leads to the formation of bubbles, followed by a sharp decline in prices.
Case: At the end of the bull market in 2021, the price of Bitcoin broke through $60,000, market sentiment was extremely optimistic, but then the price plummeted to below $30,000.
Increased selling pressure
When investors take profits or lose confidence in future price trends, large-scale selling can lead to price declines and may trigger broader market downturns.
Indicator: The amount of withdrawals from exchanges decreases, and on-chain whale addresses begin to transfer assets to cold wallets.
Decreased trading volume
In the later stages of the bull market, trading volume may begin to decline, indicating a weakening of buyer interest. A decrease in trading volume may signal the imminent end of the price uptrend.
Case: In October 2024, Bitcoin's price hit a new high, but trading volume dropped by 30% from previous peaks, followed by a price correction.
Increased volatility
In the later stages of the bull market, the price volatility of cryptocurrencies like Bitcoin may increase. This could be due to holders selling tokens to cash out or panic selling.
Indicator: Bitcoin daily volatility exceeds 5%, or there is a single-day fluctuation of more than 10%.
Frequent negative news and sentiment
Frequent negative events such as regulatory crackdowns, hacker attacks, or project teams running away, lead to a decline in investor confidence.
Case: In August 2025, a leading exchange was investigated due to compliance issues, causing panic in the market.
Technical indicator divergence
When prices continue to rise while technical indicators (such as RSI, MACD) decline, a divergence occurs, which may be a potential signal that the bullish trend is about to end.
Action: If RSI is overbought (>70) and prices hit new highs but MACD shows a dead cross, be wary of the risk of a pullback.
Altcoin surges followed by crashes
As the bull market approaches its end, many speculative altcoins surge several times, but then crash quickly, leading to a crisis of trust in the market.
Case: In July 2025, a certain meme coin surged more than 500% in a single day, but returned to zero within a week, causing heavy losses for investors.
Two, the risks of 'battle addiction' at the end of the bull market
Profit loss
At the end of the bull market, price volatility increases, and if profits are not taken in time, it may lead to significant shrinkage of the already gained profits.
Case: At the end of the 2021 bull market, a certain investor did not sell when Bitcoin was at $60,000, and the price subsequently plummeted to $30,000, resulting in a profit loss of over 50%.
Principal loss
After the bull market turns into a bear market, prices may remain depressed for a long time, even going to zero (such as some altcoins).
Case: In 2022, the LUNA crash saw the price drop from $119 to $0.0001, leaving countless investors with nothing.
Opportunity cost
Getting addicted to battles may lead to funds being trapped, missing investment opportunities in other markets (such as U.S. stocks, gold, etc.).
Case: In 2025, U.S. tech stocks performed strongly, but a certain investor missed a 20% increase in the Nasdaq index due to getting addicted to the crypto market.
Three, coping strategies: How to avoid the 'battle addiction' trap
Set profit-taking targets
Set profit-taking points based on risk preference (e.g., sell 1/3 of the principal for every 20% increase), to avoid greed causing profit loss.
Tools: Use the stop-loss and take-profit order functions of exchanges to automate strategy execution.
Shift to defensive assets
Convert part of the profits into stablecoins (like USDC) or mainstream currencies like Bitcoin and Ethereum to reduce risk.
Case: In August 2025, a certain investor sold 50% of their holdings when Bitcoin was at $120,000, converting to USDC, successfully avoiding subsequent pullback risks.
Pay attention to market signals
Closely monitor on-chain data (such as whale address movements), capital flows in exchanges, and changes in regulatory policies.
Tools: Use Arkham Intelligence to track whale addresses and CoinGecko to monitor capital flows in exchanges.
Avoid high-leverage trading
In the late bull market, volatility increases, and high-leverage trading may lead to liquidation risks.
Case: In July 2025, a certain investor used 10x leverage to go long on Bitcoin and was forcibly liquidated due to a 10% price fluctuation, losing all principal.
Maintain rationality and patience
Market cycles of bulls and bears are normal; avoid making irrational decisions due to short-term fluctuations.
Principle: Do not chase highs, do not bottom fish, do not get addicted to battles, strictly execute trading plans.
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