The Shocking Truth! The Secrets of the Cryptocurrency Market's Wild Swings: You Think You Can Time the Bottom and Sell High, but It's All Just Luck!
Many people believe they can sell at the peak of a bull market and buy at the bottom of a bear market, but the reality is that the boundaries between bull and bear markets can only be determined in hindsight; no one can predict the ups and downs. The only things truly controllable in the market are the timing and quantity of buys and sells; everything else is unknown.
Cryptocurrency prices often 'rise sharply and fall slowly': the explosive increase lasts only a few days, while most of the time is spent in consolidation. To catch the train of rapid price increases, one must stay on board constantly. The transition from bull to bear market is more subtle; altcoins can experience significant declines, but prices fall slowly, making it difficult for investors to cut losses and exit.
This slow decline strategy is employed by market makers to sell off positions gradually, avoiding a sudden sell-off that could crash prices. The repeated ups and downs test investors' patience and psychology, trapping many in a cycle of repeated losses, hoping that prices will return to their peaks, only to be ruthlessly crushed by the market.
Those who have not undergone 'loss-cutting training' find it hard to make money in the first bear market cycle. Only those who have experienced several significant declines in altcoins and learned to cut losses in time understand the true nature of market psychology: the market plays on human greed and fear, with rapid increases satisfying greed and slow declines wearing down patience.
Those who can see through this are not excited in the face of rapid increases, nor do they panic in the face of slow declines; they retreat at the slightest sign of trouble, often leaving behind the last group of investors ready to catch falling knives.
The transfer of wealth has long been quietly completed; only those seasoned investors can laugh through the waves of bubbles.