The altcoin market is entering a dangerous phase where inexperienced investors can easily fall into traps. Below are 4 stages of a downtrend cycle, how to identify them, and protect your assets:
1️⃣ STAGE 1: PEACE BEFORE THE STORM 🌪️
The market seems stable, but in reality, the 'whales' are quietly pulling out.
Social media is flooded with 'expert' advice that makes you feel FOMO (fear of missing out).
⚠️ WARNING:
Don't get swept up in the hype! Pay attention to spikes in trading volume that do not accompany significant price increases. This is a dangerous signal.
2️⃣ STAGE 2: FALSE HOPE 💡
Prices start to decline slightly, and major influencers and KOLs are urging: "Buy in, prices are dropping, this is an opportunity!"
The 'whales' continue to sell quietly during small recoveries.
⚠️ WARNING:
Short-term recoveries are often just 'bull traps'. Don't rush into the market without a clear plan.
3️⃣ STAGE 3: PANIC 😱
Prices are continuously dropping, day by day. Fear engulfs the entire market.
Investors are beginning to panic sell in an effort to 'cut losses' to avoid heavier losses.
⚠️ WARNING:
Don't let emotions control you! Decisions based on emotions often lead to serious mistakes. Stay calm and think carefully.
4️⃣ STAGE 4: CALM AFTER THE STORM 🕳️
The market hits bottom. Altcoin prices fall to record lows.
Weak projects disappear, while strong projects begin to gradually recover.
⚠️ WARNING:
Don't give up now! This phase is a potential time to rebuild a smart investment strategy, especially with truly valuable projects.
💡 HOW TO SURVIVE?
✅ Avoid getting caught up in FOMO – Not every opportunity is worth jumping into.
✅ Do thorough research – Only invest in projects you understand and trust.
✅ Plan your exit strategy – Always have an exit strategy to protect profits or minimize losses.
DYOR! #Write2Win #Write&Earn $BTC