Let's talk about how the market might move next! Right now, many people are worried whether the market will form a 'double top', just like when the bull market ended in 2021 - BTC had a double top after half a year at 65,000 and 69,000, trapping a lot of people.
I see that this situation does have a probability of happening, but before forming a double top, the main players will likely play some tricks first: a quick pump to wash out all the shorts! Why? Look at the current market, the bearish sentiment is as thick as ink, many people are waiting to short from this position, especially since we are close to historical highs, and technical indicators show divergence and death crosses, making it feel like everyone is either shorting or waiting, and nobody dares to go long.
Think about it, when everyone is bearish, how will the main players act? Most likely, they will reverse and have a rebound! I guess Ethereum might slowly creep up, approaching the 3000 mark, and by then the upward momentum might lose steam; but Bitcoin might suddenly do something big, directly breaking through the previous high to around 110,000! At that time, those who have been waiting on the sidelines will probably not be able to sit still and will rush in to chase the highs.
Once the price breaks the new high, the stop-loss levels set by those who shorted will be as flimsy as paper, and the bears will panic in an instant! After all, when Bitcoin breaks the historical high, it often means that there will be a bigger market movement ahead, and the bears will have to close their positions obediently. At this point, market sentiment might soar, and retail investors will rush to chase the price, just like grabbing cabbages.
But here comes the key point! If the main players suddenly turn around and drop the price, for example, if Bitcoin falls back to around 100,000, and Ethereum drops from 3000 to 2500 or even lower, the market will immediately become chaotic! Panic sentiment will spread rapidly, and many retail investors will probably be scared out of their wits, quickly cutting their losses to exit.
This wave of correction will be ruthless, simply 'killing two birds with one stone': on one hand, it clears out all the retail investors who chased the highs; on the other hand, it reduces the selling pressure for the subsequent rise. After all, most people can't bear such large fluctuations, and when the price drops, they quickly stop-loss, allowing the main players to take the opportunity to pick up chips at low prices for the next wave of increases!
