A must-read for beginners! The rise and fall of the currency circle has a regular pattern
In the cryptocurrency market, altcoins will definitely rise when the bull market comes! Every bull market has a fixed plot: Bitcoin takes the lead, followed by Ethereum and other ten mainstream coins, then fifty or so smaller coins also rise, and finally altcoins collectively revel.
In a bear market, the main force collects chips like a lurking hunter, and when everyone is unwilling to sell at a low price, it is useless to suppress the price, so it can only pull up to absorb chips. Although the market crash can scare away retail investors to take some chips, if retail investors do not cut their losses, the main force will have to change its tactics, otherwise it is easy to get involved.
In the early stage of the bull market, the main force first pulls Bitcoin, which has low risk and stable value, and large funds love to invest. Once Bitcoin rises, it produces a "blood-sucking effect", sucking away the funds of other coins, especially altcoins. The main force takes the opportunity to lower the price of altcoins and make money by shipping.
When Bitcoin rises and adjusts, funds will find new targets, and mainstream coins with slightly higher risks will become popular. Retail investors followed suit and chased high prices. After the main force sold out, the funds went to speculate on altcoins, and the cycle continued until there were no more cheap and speculative coins. This crazy game ended.
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