Many people always think they can sell in a bull market and bottom-fish in a bear market.
In fact, both bull and bear markets are only recognized after they happen. During this process, it is impossible for you to know.
Based on your lack of knowledge, there are no conditions for judgment. Therefore, the so-called selling in a bull market and bottom-fishing in a bear market is also an impossible concept.
Many people say, how could I not know? $100,000 is a bull market, and $70,000 is a bear market. Then I ask you, what about $150,000? $200,000? And then what if it drops to $50,000 or $60,000? What would you say then?
Based on the actions of selling in a bull market and bottom-fishing in a bear market, those who succeed are all just lucky.
The only two actions you can truly control in the cryptocurrency market are buying and selling, and one variable: how much to buy or sell.
Everything else is beyond your control.
Looking back in hindsight, for instance today, $100,000 should be a great time to sell. When is the right time to bottom-fish? You wouldn’t know. When it drops to $50,000 and then to $20,000, you will think that $50,000 to $80,000 is the time to buy. However, if it hasn’t dropped or risen at that moment, you will never know.
So talking about selling in a bull market and bottom-fishing in a bear market is a misconception. If your concept is wrong, your understanding is wrong; if your understanding is wrong, your actions will be wrong; if your actions are wrong, making money will be very difficult.
A rule in the cryptocurrency market that I want to mention today is rapid rises and slow declines.
Bitcoin rising from $15,000 to $100,000 seems to be a very emotional process, all part of the upward trend.
In fact, the time of real explosive growth is only a few days. Most of the time, if you look closely, it’s all just oscillation.
After a period of oscillation, there will be a rapid surge; if you haven’t been on the ride the whole time, you won’t be able to keep up.
It’s like when you are in a car, and the vehicle suddenly starts. How could you possibly catch up? Unless you are always in the car.
The transition from a bull market to a bear market is even harder to perceive.
For example, if it is currently $80,000, altcoins have dropped by 70%. Later, altcoins may continue to drop by 50%.
Why do you see the drop but still don’t want to sell? You’d rather be deeply trapped than let go.
This is because the decline in the cryptocurrency market is very slow. Here’s the situation: you bought 1 million, it rose to 3 million, and finally dropped to 2.7 million. You don’t want to sell anymore; you think about selling when it hits 3 million. It rebounds to 2.8 million, then continues to drop to 2.5 million. You want to sell at 2.8 million, but it drops straight to 2 million. You simply decide not to sell, and finally, 2 million becomes 1 million, then it rises again to 1.5 million. You can only pretend not to see it. 1 million turns into 500,000, then rises to 700,000, and you are already helpless, thinking it’s better to just let it be. Throughout this process, you hope every rebound will return to the original price, but the market is no longer the same as it was back then.
Why doesn't the market drop quickly? This is because the major players cannot sell all at once for a good price; their volume is too large and can only be sold slowly. Every rebound allows them to sell using various favorable news. A catastrophic market scenario is actually caused by a chain reaction. This is an opportunity to make money; after a sharp drop, it won't be long before there's a rebound. Many bold people will take the risk to capitalize on emotional money. Therefore, when the market drops, it is very torturous, especially with altcoins. If there is a panic sell-off, you might really be scared to cut your losses. However, in reality, it rarely drops drastically; it tends to oscillate between falling and rising. For example, if the price is 10, six months later, it could suddenly drop to 1, losing 90%. During this process, it feels like something is blocking your eyes and you have no idea what’s happening.
In fact, you just haven’t undergone deliberate training, so your perception of the price drop trend is not obvious. This is the fundamental reason why newcomers cannot make money in their first cycle.
In the second cycle, if you still mix with altcoins, you will have gained experience. After selling altcoins a few times, you will be completely accustomed to cutting your losses. Once the market starts to decline abnormally, you will be very alert. For example, if you earned 10 times and it drops to earning 7 times, you will leave immediately. You won’t linger thinking about how much more you want to earn.
This cognitive process is such that when others tell you a few times, it’s not as effective as you taking your money and cutting your losses once. After you cut your losses and lose money, the first time it hurts, the second time you become numb, the third time you are calm, and the fourth time you are very relaxed. Then you have succeeded; if you earn on any altcoin, later when they try to numb you, it’s simply impossible, and you will immediately cut your losses and exit.
I see many people who earn but are unwilling to sell, waiting for the drop to break even. Selling a coin feels like selling a son, which is hard for them. This is due to their lack of deliberate training.
The market operates according to human nature; it’s all about human nature. People crave rapid rises, so the market will unconsciously rise quickly. People hope for slower drops and want rebounds to come back, resulting in a slow decline.
However, those who understand human nature remain calm in the face of rapid rises and are alert to slow declines. At the slightest hint of trouble, they have already exited.
Those who remain are all the ones left holding the bag, and they still hope that their next altcoin will rise again, which in fact is already impossible.
The market has already completed the transfer of wealth through a wave of trends. And this process is quiet. Only those who have undergone deliberate training can feel it and make money from the bubbles within.
Keep going, I am Xiao Qi, a sincere wish for you to become rich in the cryptocurrency world.
Continue to pay attention to BTC, ETH, BNB.
Bulls have their strategies, and bears have their ways of playing.
Xiao Qi won’t lead fans into liquidation, nor will he blindly open orders.
It’s all about striving for victory steadily, making sure to keep up with Xiao Qi if you want to profit!