In this magical and tempting world of cryptocurrencies, the price of Bitcoin swings like a roller coaster, pulling the hearts of countless investors.
I still remember when Bitcoin rose to $50,000, a friend on WeChat sent me a message filled with worry: "Is the bull market coming to an end?" I confidently told him, "The peak of the bull market has just begun." However, the market is like a mischievous child, never playing by the rules. A small pullback that followed was like a mini storm, easily shaking his faith.
He began searching for answers online, like a boat lost in an ocean of information. Those so-called influencers were like lighthouses, attracting him towards them. However, the answers they provided were shockingly consistent: Bitcoin is about to crash. This news was like a heavy bomb, instantly shattering the little trust he had in me. The balance of trust decisively tipped toward those influencers. Thus, he gritted his teeth, resolutely liquidated his position, eagerly anticipating that after Bitcoin's crash, he would be able to pick up cheap chips and make a big profit.
But who could have thought? Bitcoin is like a phoenix reborn from the ashes; not only did it not crash, but it soared to the sky, charging towards the astonishing historical high of $100,000. As for my friend, he walked further down the path of shorting, like a person stuck in a swamp, struggling only makes him sink deeper. In the end, he faced liquidation, and the chips he once held disappeared like bubbles, leaving only endless regret and sighs.
Time quietly passes, and recently, another WeChat friend reached out to me. His question was very direct: "Has Bitcoin peaked?" I calmly replied, "Not yet." He seemed to want a more precise answer, and immediately asked, "When will it peak?" I could only tell him, "When it peaks, there will be subtle signs to inform us."
In this age of information explosion, investors in the cryptocurrency market are like a group of people groping in the dark. Whenever there is a slight movement in the market, they frantically seek answers on social media. Whenever the trend changes slightly, they eagerly hope that the internet will provide them with clear guidance like a deity. However, what they do not realize is that this short-sighted behavior of blindly relying on external information is like building a house on the beach; the foundation is unstable and may collapse at any moment.
Those hidden market forces see everything clearly. They are like a group of cunning spiders, adept at using media and those so-called "influencers" to weave seemingly reasonable "information webs." Various seemingly substantiated news floods in, such as "regulatory policies are about to tighten," "institutional funds are withdrawing en masse," and "the global economic situation is affecting cryptocurrency trends," etc. These messages are like a swarm of buzzing flies, leaving investors dizzy.
Why do many investors believe these messages so firmly? In fact, the cryptocurrency market has been in a state of fluctuation for a long time, occasionally experiencing significant pullbacks, like a series of nightmares, exhausting the investors. In such circumstances, these so-called "insider messages" become a lifeline, creating a strong sense of dependency.
Most people always keep their eyes glued to the short-term fluctuations but overlook the long-term trends hidden behind them. Short-term fluctuations are like fleeting waves on the surface of the sea; they seem tumultuous, but in reality, they are just surface appearances. The long-term trend is akin to the currents hidden beneath the deep sea; it is the true force that determines the market's direction. If one is blinded by those short-term fluctuations and lacks accurate judgment of the long-term trend, investors can only be like puppets led by the nose by market news. This is not only a major investment taboo but also a weakness in human nature that is hard to overcome.
Take the price movements of Bitcoin in the past few years, for example. It has risen and fallen like an exciting blockbuster. It seems to have experienced several heart-stopping crashes, but in reality, if you look a little further ahead, you will find that its overall trend is upward. If you only focus on the immediate declines, allowing fear to dominate your heart, thereby ignoring the overall trend, you will only watch true investment opportunities slip away.
Just as nature has the cyclical pattern of changing seasons, the market's ups and downs also follow cyclical laws. A small pullback is like a light snowfall in winter; although it temporarily blankets the earth in white, it cannot stop the arrival of spring, nor can it change the market's long-term upward trend.
Now, the cryptocurrency market is like a huge magnet, with more and more funds continuously flowing into this field, which means traditional financial capital is gradually gravitating towards the cryptocurrency market. However, many investors still only see the immediate flow of funds, and once they see money flowing out, they panic and think the market is failing.
As investors, when hearing various predictions and news, we really need to think carefully first. Where do these messages come from? Do the people releasing the news have sufficient market analysis abilities? How much do they understand about blockchain technology? Listening to news is also a skill, but this ability presupposes that we already possess enough judgment and discernment.
Only by continuously improving our abilities, learning to think independently, and making our own judgments can we distinguish the truth from falsehoods with the keen eyes of a hawk, reducing the risk of being misled. On this thorny path of investment, we must not only learn to dance to the rhythm of the market but also cleverly avoid the traps hidden in the shadows. Only in this way can we steadily move forward in the unpredictable storm of the cryptocurrency market, ultimately welcoming our own bull market and reaping abundant wealth and growth.