The Market Cycle is Repeating – Here’s Exactly What Happens Next
The most important lesson about crypto pumps lies in understanding market cycles.
🔥 Phase 1: The Trap is Set 🔥
- A coin suddenly pumps 50-100% in days.
- Social media fills with "This is just the beginning!" hype.
- Volume spikes as FOMO (Fear of Missing Out) takes over.
- What you don’t see: Whales quietly setting up their sell orders into the hype.
🏦 Phase 2: The Distribution Game 🏦
- Price makes higher highs but with:
- Decreasing volume
- Weak candle closes
- Long wicks (rejection signs)
- Professional traders: Taking profits.
- New traders: "It's going to $1000!"
⚠️ Phase 3: The Reality Check ⚠️
- First big red candle appears (-15% to -20%).
- "Buy the dip!" traders jump in.
- Second, sharper drop follows (-30%+).
- Now everyone is trapped.
---
🎯 How to Play This Correctly
💰 If You’re Early (Bought Low):
✅ Sell 25% at first major resistance.
✅ Another 25% at the next level.
🚨 Move stop-loss to breakeven.
🚩 If You’re Late (FOMO’d In):
⚠️ Set tight stop-loss immediately.
📉 Prepare to exit at the first sign of weakness.
🔍 If You’re Watching:
🎯 Wait for:
- Volume to dry up
- RSI to cool below 40
- Clear support formation
---
💎 The Hard Truth
90% of traders lose money in these cycles because they:
❌ Ignore historical patterns.
❌ Trade on emotions rather than logic.
❌ Hold too long, hoping for “just a little more.”
🔹 Your Move:
💎 “I take profits strategically.”
📚 “I need to learn chart signals better.”
📌 #CEXvsDEX101 #Binance #TradingTypes101 #CryptoMarketAlert