In 2023, the cryptocurrency world has changed significantly compared to previous years. Friends can no longer view the market with past trading logic.
The historic change is that Bitcoin has received support and recognition from the United States, and more and more institutions are entering the space. The future of Bitcoin is full of uncertainties.
The changes in the market have led many friends to feel that in the past, when Bitcoin rose, altcoins soared as well. Now, when Bitcoin rises, why don't altcoins follow? The biggest reason isn't that altcoins aren't rising; rather, the biggest reason is that altcoins had already experienced a frenzy at the beginning of 2024. After the market makers took profit, funds fled rapidly, causing a significant sell-off, leaving many retail investors stuck at the top. Many friends think that after the correction, prices can go higher, but what I want to say is that altcoins are merely tools for the market makers' harvesting. Bitcoin will reach new highs, but altcoins will only have unreachable peaks. Additionally, the liquidity in the market is poor, with no new funds entering and existing funds merely cutting each other. The market's capital is primarily concentrated in Bitcoin and Ethereum; without inflows, altcoins are left to be drained.
How to trade? I believe the most important points are:
1. Develop your own market sense. What is market sense? You can observe the trading methods of the market makers daily. Each cycle has similarities, and everyone has their own habits. Once these habits are formed, they are not easy to change, including the trading methods of market makers. By understanding their methods over time, you will develop your own market sense.
2. Observe market sentiment. The simplest way to put it is: when others are fearful, be greedy; when others are greedy, be fearful.
3. Do not blindly trust technical analysis. Candlestick charts are drawn by market makers for you. It’s not that technical analysis matches the market; rather, the market matches the technical analysis.
4. Stick to your direction and do not chase highs or panic sell.
There are actually many other points, but I won't share them all here.
