Many experienced users who have been in the trading field understand that a market collapse is an inevitable thing that will sooner or later reach us and I will give you an example with two topics 1. Several historical events with the $BTC cryptocurrency
2. Market collapse.
1.
July 2011 – November 2011. After the hack of the then largest crypto exchange Mt. Gox, the price of Bitcoin began to fall. By November 2011, BTC had lost more than 90% of its value and fell to $2.3
2.
December 2013 – January 2015. Having reached a historical maximum of $1.2 thousand per coin in November 2013, Bitcoin entered a bearish cycle that lasted more than 400 days and ended only in early 2015. During this period, BTC lost more than 80% of its value and by January 2015 fell below $200.
3.
January 2018 - February 2019. The next protracted bearish cycle again lasted more than 400 days. After a historical maximum of $20 thousand, BTC began to fall again and by February 2019 it rolled back to $3.4 thousand. In 2018, Bitcoin lost about 80% of its value, and the crypto market lost $700 billion in capitalization.
4.
March 12, 2020. The market crash occurred amid panic around the world when the threat of the COVID-19 virus was officially recognized as a pandemic. In just one day, Bitcoin fell by 37% — from $7,911 to $4,970.
5.
The current time is December 10, 2024.
1. The uptrend of the market has ended.📉
This happens when investors are no longer interested in investing, they prefer to take their profits and go into hibernation, waiting for the next decline.
2. Market correction.
This happens when there is too much selling and buying, and the system needs a rest, this is a natural phenomenon of financial markets to minimize mistakes and prepare the market for the next move.
3. Whale manipulation.🐳
As I gave you the example above, it proves that a market fall is inevitable and that after each decline there is stabilization, a rise in price and again a decline, or rather a circular cycle. To this end, I have created a diagram for you that will give you a clear understanding.👇
Because the market can't be in its peak state forever and it needs to fall after the price rise in order to develop.
And you will say so where is the secret of success since you only gave examples of the market and cryptocurrency falling?
So now I'll tell you!
The trading sphere is like a gambling game in which there are victories and defeats and for example in the form of card games you can win, lose and even cheat for the sake of victory, but if you are caught cheating, then you will not be released without punishment, so, but there is a difference between the excitement of card games and the excitement of trading, and the difference is that in card games you can cheat for the sake of your victory, and in trading you cannot cheat because this is a market and not a card game, but of course in trading there are very good nuances in contrast to card games, and the nuances are that, as I gave examples above, the fall of the market and cryptocurrency and this is your secret to success and this secret is very simple!
Market stabilization, market price rise and market fall again, very easy right?
Circle 🌪️
So that's all you need to know!
When prices go up on tokens and you start making money, you need to immediately sell your tokens because after a sharp rise in prices, the market will start to fall again because the left society will not give too much power to the market because it is not profitable for them, after that, wait for the market to fall as everything will fall again and the prices will either return to the old price or slightly higher than the old price and at this point in the cycle you will need to buy these tokens again and when you buy them, the price will stabilize again and everything will repeat.
Here is a simple description for the concept
✅Buy during a fall in market prices
✅Wait for the market to stabilize
✅Wait for the market price to rise and sell as you get your profit
✅And sell again and so the cycle
The biggest mistake the user makes is that they are consumed by excitement and greed after they see that they have made a good profit and seeing this they want more and say well I'll leave it maybe the price will rise again and it is these words "maybe the price will rise again" that spoil everything!
Example:
How recently the price of BTC rose to $100 thousand and most users seeing this were captivated by excitement and greed to leave it saying "maybe the price will rise again" yes it rose to $103 thousand and of course they thought that it would rise again and did not sell their tokens and lost half the profit and collapsed although they could have stopped and repeated the rules of the cycle.
Dear friends, do not let greed and excitement take over you, see, this is exactly what is in favor of the society that beats the market prices.
You probably say, who is he that tells us this?
Me? Nobody
I am the same user who traded like you and many times suffered failure and collapse because excitement, greed and these words "maybe the price will rise again" took over me, so guys, learn from your mistakes and from the mistakes of others, because the best secret of success and the best teacher are failures in life that allow us to gain experience.
Thanks to those who read to the end. Good luck and success in your trading, I hope I was able to help you with something.