Brothers, have you noticed? The market has become really disgusting lately. Many altcoins, which usually seem lifeless, suddenly spike with a 30%, 50%, or even double increase. You think the trend has arrived? You jump in wanting to take advantage, but then you realize how it went up and how it came down, and you're stuck.
Stop guessing, this is the truth of the current altcoin market: there is no healthy bull market, only a 'forced short squeeze' of existing holdings.
1. A comprehensive altcoin season? That is already an old story.
First, give up the fantasy. Expecting a flood of funds like we had in 2017 and 2021, where all altcoins benefited equally? That kind of prosperity is gone.
This round is an institutional pricing market, money is directly funneled into Bitcoin through ETFs, it struggles to fill its own appetite, how much profit flows into our altcoin den? If you look closely, apart from a few mainstream coins with backgrounds that can bounce a bit, most altcoins are typically in a state of decline, playing dead.
Moreover, the threshold for issuing coins is now as low as hell mode; anyone can come and tell a story. The era where you could rely solely on PPTs and community calls to pull the market has completely turned the page.
2. The current 'market' is essentially a collection of contract gamblers.
So why do altcoins still suddenly spike?
The answer is: The project party and the main force have no money to pull the market to help the spot break even, but they have enough chips and information advantages to accurately blow up the short positions in the contract market.
This has become a low-cost model for maintaining hype or even making profits:
First, use a long period of decline to wear down your patience, filling the market with a consensus of 'shorting'.
Then, take advantage of the liquidity drying up, using relatively little capital to instantly pull out a large bullish candle.
At this time, high leverage short positions continuously get liquidated, forced buying will create a push, further driving up prices and attracting FOMO retail investors to follow suit.
Once the hype builds up, they will sell the chips to the newcomers, and the price will return to a downward channel.
So what you're seeing is not value discovery, but a meticulously designed 'harvest'. Your ONDO, APT suddenly surge, may not be because the project party did something big again, but simply because they want to blow up those shorting gamblers. And you, if you can't hold back and rush in, will become the one holding the bag.
3. What should you do about the deep underwater spot you hold?
In this harsh environment, we retail investors holding spot positions are in an even more difficult situation.
Here are two life-saving suggestions:
Quickly conduct an 'autopsy' on the coins you hold:
Go check if the project's Twitter or GitHub is still being updated? Is it dead or alive?
Besides cursing and calling for trades, are there any real users discussing in the community?
If the answers are all 'No', you can basically conclude it is in a 'vegetative state'. Don't fool yourself.
Develop a rational escape/self-rescue plan:
For 'vegetative' projects: The next time this type of 'short squeeze rebound' happens, it will be your last escape window! Don't expect it to bring you back to break even; whatever you can salvage is a bonus, transfer your precious capital to a place with more hope.
For coins with potential: If you still believe in its logic, don’t stubbornly hold on. Use a dollar-cost averaging approach to lower your cost at the low points. Also, remember these 'short squeezes' give you lessons—they are your opportunities to reduce positions, not signals to chase high.
Finally, let me share a few words of encouragement with the brothers:
Don’t dream in the spot market with a bull market mindset. It is a hunting game of existing funds now; survival is the top priority.
Bull markets rely on imagination, bear markets rely on insight. By seeing through the essence of the 'short squeeze market', you can maintain a little more calm than others.
Preserve your core ammunition ($BTC BTC$ETH /ETH/$BNB BNB), use spare cash to gamble on the future. As long as you’re still at the table, there’s always a chance.
Remember, only hunters who survive the cold winter can enjoy the feast of the next spring.#山寨季何时到来？ 
