did you get shake out last night from $92k to 96k and back to 92k in 8hrs?
$BTC Intense Price Fluctuations in a Short Time: Why Does It Happen and How to Avoid It?
1. Why Do These Intense Fluctuations Happen?
In the chart, we can see prices rapidly rising and then sharply dropping in a short time. This is often caused by "super players" (large investors or institutions) manipulating the market with massive funds. They use large buy or sell orders to create panic and trigger irrational actions among retail traders. The purpose is to "cut the leeks," forcing weak hands to stop out or liquidate their positions, creating profit opportunities for themselves.
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2. How Can This Be Avoided?
Stay Calm and Avoid Chasing the Market: During intense price swings, refrain from making impulsive decisions. Observe market sentiment carefully and avoid being influenced by panic.
Set Reasonable Stop-Loss and Take-Profit Points: Predefine your risk range to prevent making incorrect decisions under emotional pressure.
Focus on Long-Term Trends: Don’t get distracted by short-term volatility; instead, focus on larger time-frame trend analysis.
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3. The Key Question: Are You a "Weak Hand"?
Most retail traders tend to sell or buy impulsively during sharp market movements, which is exactly what big players aim for. Ask yourself, "Am I making decisions based on emotions?" If the answer is yes, it’s time to adjust your trading strategy and learn to stay composed during market fluctuations.
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