Is the bull market still there?
The recent cryptocurrency market has made many people doubt their lives. The market continues to fall, a bit like a roller coaster that suddenly goes out of control. Everyone's mentality has changed from initial optimism to current doubt and panic.
Let me first talk about the reasons. First, the liquidity of the market began to tighten, and the capital flow of major institutions became cautious. To put it bluntly, there is less money in the market, and everyone is waiting and not willing to enter the market easily.
In this case, the buying volume decreases and the selling volume increases, so naturally the price cannot be suppressed. Secondly, the global economic situation is not optimistic. Although the Federal Reserve has temporarily stopped its policy, the shadow of interest rate hikes is still there. The expectation of interest rate hikes makes the market feel uncertain. Everyone is worried about the rising cost of funds, and the sentiment of selling to avoid risks has increased.
In addition, some project owners are under selling pressure. Recently, more and more projects have been unlocked, and many people choose to sell the coins they get as soon as they get them. After all, the unlocked coins are free, so they should cash them out if they can. This selling pressure is like a snowball, getting bigger and bigger, and directly collapsing market sentiment.
Some people may ask, is this situation going to collapse? My opinion is that it won’t for the time being. Although there is not much good news in the short term, the market will not immediately enter a long-term bear market. Now it is more of a shock consolidation, and the market is looking for a new balance point.
However, one thing to note is that you should not have too high expectations in the short term. In this environment, it is more reliable to sell at high prices than to buy at low prices. Don't hold on to the illusion that "it will rise again after falling". After all, the market is ruthless, and the price of making mistakes is to be taught a lesson by the market.
The current market situation is the result of tight funds, panic, and project selling. There may be some fluctuations in the short term, but don't be too pessimistic. Remember, winning with stability is the kingly way. Do a good job of risk control and don't blindly follow the trend. There are many market opportunities, but only by waiting patiently can you seize those real opportunities!
Many people are trapped at high levels on the eve of the bull market. How to get out of this trap?
Untrapping, as a term in the cryptocurrency circle, means selling the currency to recover funds when the price of the currency rises back to the purchase price. Only when you learn how to set a trap can you truly learn how to hunt; only when you learn how to untrapeze can you truly understand how to trade in cryptocurrencies. The following are some methods of untrapping, which are generally divided into two types.
1. Active unwinding strategy
1. Cut positions
If you find that buying is a serious mistake, especially buying at the peak of the previous bull market, you need to be determined to cut your losses in time to ensure the safety of your funds. There are many opportunities in the currency market, and as long as your funds are not seriously damaged, you can always make them back.
2. Currency exchange
When the currency in your hand is trapped and in a weak position with room for decline, if you accurately judge that another currency has a large room for growth in the future and a stronger trend, you can decisively exchange stocks and use the profits of the new currency to offset the losses of the old currency.
3. Short Selling
When you are sure that you are deeply trapped and cannot liquidate your position, and there is room for the market or a certain currency to fall further in the future, you can adopt the short-selling method, first sell the trapped currency, and then buy it back at a lower price, which effectively reduces the cost.
2. Passive unwinding strategy
1. Flatten
When the purchase price is not high or you are firmly optimistic about the future market, you can choose to use the averaging technique. However, ordinary investors can usually only withstand one or two averagings, so the timing of averaging is crucial.
2. Lie flat
When you are deeply stuck with a full position and cannot sell or cover your position, you can only wait passively. As long as it is your own money, not borrowed or loaned, you have the patience to wait. Do not be emotional and break the pot, blindly cover your position or sell your position easily. Being stuck is not terrible. Sometimes you will not make money if you are not stuck, but you may make a lot of money if you are stuck. Therefore, do not simply regard being stuck as a disaster. If you deal with it properly, it is entirely possible to turn it into an opportunity.