The background is almost drowned by the brothers' complaints! 'What on earth is going on with this market? Sideways for 18 days, staring at the screen until my eyes are blind and there’s still no movement.' 'Why not just make a big move? If it drops enough, I’d dare to increase my position, but now it’s just grinding me down and I want to clear my position directly.' 'The adjacent sector is rising every day, but my holdings feel like they’ve been hit with acupuncture; my mindset is collapsing!'
To be honest, this is the most counterintuitive trick of a bull market. Big capital players never use sharp declines to wash out positions; their most ruthless tactic is to use 'meaningless sideways trading' to wear down your patience and force you to exit voluntarily. As someone who has watched the crypto market for 8 years, today I’m going to share the logic behind this. Those who understand can position themselves well before the main upward wave!
Don't be foolish! Bull market washing ≠ market crash; bear market thinking kills.
Many brothers still hold the old belief that 'washing means a crash'; this is purely applying bear market strategies to a bull market! Big funds now are fundamentally afraid to use the crash tactic —
A market crash is like a bulldozer plowing a vegetable field, taking away both the seedlings and the soil. Think about it, after the sharp drop in 2021, how many people exclaimed, 'I will never touch crypto assets again'? What was washed away is not just the speculative chips wanting quick profits but also the future 'buyers' and following funds during a rally. A bull market wants 'many hands make light work'; if the market is left only for big funds to play, when it rises, no one follows, and when it sells, no one catches it, isn’t that just digging a pit for themselves?
More crucially, the upward trend of a bull market is like a LEGO castle built; a crash directly demolishes the castle and rebuilds it, whereas big funds want to 'add bricks and tiles to the castle.' Remember my words: a bear market uses crashes to 'clear the field,' while a bull market uses fluctuations to 'filter out people' — they want your 'impatient selling chips,' not your 'desperate exit silhouette.'
The three golden conditions for the second phase of a bull market, none of which are satisfied by a market crash.
Why is the second phase of a bull market considered 'the easiest time to make money but the hardest to endure'? Because it requires three precise strategies, and a market crash could ruin it all:
The rhythm cannot be disrupted: it’s like running a marathon; in the first half, you need to maintain a steady pace. Suddenly stopping and sprinting only leads to muscle strains. Once the upward channel of the second phase of a bull market is broken by a crash, it will take two to three months just to restore confidence, and big funds are not patient enough to wait.
Holdings need to be 'clean': it doesn’t mean getting rid of all retail investors, but rather driving away the 'short-term traders who love to fidget.' During sideways grinding, those who chase highs and lows, checking their accounts eight times a day, will be the first to crack and leave, leaving behind either steadfast long-term investors or 'quality holders' who have been worn down and are not easily moved.
Market sentiment needs to be moderate: too quiet with no buyers, too heated and it will grab too many chips. What big funds want is 'a non-crowded path'; if a crash scares everyone away, subsequent rallies will become 'self-directed solo performances' that cannot go far.
The three 'grinding knives' of big funds are ten times harsher than a market crash!
Real washing is not about making you 'hurt once,' but about making you 'itch to the point of collapse.' What is currently unfolding in the market is precisely these classic operations; see how many tricks you have fallen for:
Pin washing: tricking you into a stop-loss, only to surge back after an early morning dip of 3 points. You think it's going to break down and hurriedly clear your positions, but in the afternoon it slowly returns to its original level. After several cycles, you neither dare to stop-loss easily nor boldly add positions, and you are painfully turned into a 'frightened bird';
Time washing: enduring until you forget about your positions, which have been consolidating for half a month with no ups or downs. You go from 'watching the market for 8 hours a day' to 'opening the app once every three days,' and eventually completely forget about your holdings — congratulations, at this time, big funds are quietly accumulating, and by the time you remember, the main uptrend has already moved ahead;
Emotion washing: using FOMO to force you to switch positions while neighboring sectors are rising every day, and your friends are showing profit screenshots while your holdings remain stagnant. Watching others make money while you miss out makes your mindset increasingly anxious, and finally, you can't help but sell to chase the hot sectors. Just after selling, your original holdings soar as if they have cheat codes — this is the 'emotional trap' played by big funds.
The core of these operations is to make you 'unable to see opportunities, doubt yourself, and fear action.' You think there is no market, but in fact, big funds are quietly accumulating, just waiting to wash away the last batch of impatient people.
Current market situation: the more it grinds, the closer it gets to the main uptrend!
Have you noticed that the market is particularly 'weird' right now? It always bounces back after a drop, never showing a significant bearish candle; it seems quiet, but the key support levels have never been broken; there are fewer complaints in the forums, and more people saying 'just relax' and 'go with the flow.' This is precisely the 'perfect state' of the second phase of a bull market!
What big funds want is 'stability without a breakthrough': it's like compressing a spring; the longer it is compressed, the higher it will bounce back. They don't need you to be desperate, just tired — exhausted retail investors won't recklessly add positions, won't stubbornly hold onto trades, and won't go against big funds. When the main uptrend arrives, they will just follow the trend and won't randomly exit.
Lastly, let’s be honest.
Now is not the time to exit; it’s the time to 'endure to eat meat'! Those days that make you want to clear your positions are precisely when big funds are giving you opportunities.
