In the cryptocurrency world, 'slow rises and sudden falls', what is usually the next move?
This usually occurs during a rebound or a bullish trend reversal, typical of bull market shakeout tactics.
When a coin finally rises for a few days, suddenly there’s a big drop in one day, and the rise of a few days is not enough to offset one day’s drop. Most newcomers and those with poor risk tolerance will obediently surrender their holdings;
After the decline stabilizes, it begins to slowly rise again. Generally, the stock price will reach new highs, and at a certain height, when many follow-up positions appear, the main funds will repeat the old trick, leading to another sudden drop during the upward trend.
Typically, this type of decline is marked by its speed and short duration.
Sometimes, in just a few days, the market may drop by 5%-10%; other times, it may take longer with a decline of 15%-20%. However, adjustments usually occur at important support lines to the maximum extent.
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