How can ordinary people seize market opportunities during the bull-bear transition?
Let's talk about the bull market and bear market; many people actually haven't paid much attention to the differences between them.
When a bear market arrives, it can be quite thrilling. At first, prices may spike dramatically, but that good fortune doesn't last long, and then it's a continuous decline. At this point, the whole world is spreading bad news. Although prices may occasionally rebound, those bad news stories weigh down prices like a big stone, making it hard for them to rise. Especially for those cryptocurrencies, price fluctuations feel like a roller coaster; it can really be unbearable for those with weak hearts.
Speaking of altcoins, the situation is even worse. Many altcoins have dropped to mere fractions of their value within one or two years, with only a few strong ones managing to hold on. Looking at those altcoins now, most have dropped by 90%, and they might continue to fall further. However, it's also quite interesting that those altcoins that survive may thrive again in the next bull market; fortunes truly shift.
Looking at the candlestick chart, if there are more red than green, prices seem to be pressed down and rubbed against the ground, either dropping or remaining stagnant. At this time, retail investors really struggle; most have lost a significant amount of money, feeling quite frustrated.
The bull market, on the other hand, is completely different. Initially, prices may also drop suddenly, but don't worry; they will gradually rise again. At this time, although there are still many bad news stories, occasionally, good news will come out to offer some relief and give everyone a glimmer of hope. Most cryptocurrencies rise in tandem with the market; that momentum is like a rocket taking off.
The market is bustling; everyone is passionately looking at charts, and the green bars are almost invisible as prices soar. At this point, fewer people are losing money, and it's easier for retail investors to make a profit; their mood cannot be described as anything but pleasant.
Therefore, understanding the differences between the bull and bear markets is crucial for our market operations. Whether it's trying to minimize losses in a bear market or maximizing profits in a bull market, one needs to have a sense of the situation to navigate the market effectively.
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