RIGHT NOW! The market is covered in green, but don't be subjective because the cryptocurrency market is experiencing the strongest fluctuations. In particular, when Bitcoin ($BTC) reached the 64,000 USD mark, many people believed that this was a sign that the peak of 100,000 USD was right around the corner. But be careful, as this can be an extremely dangerous bull trap. 🪤
What is a Bull Trap? 🤔
When the price of Bitcoin increases sharply and quickly, many new investors, or those lacking experience, will rush to buy in the hope that the price will continue to increase. But in reality, the crypto market always has great risks. Prices can reverse unexpectedly, causing those who bought at the peak to suffer heavy losses.
Real-Life Example: November 2021 Bull Trap
A prime example is in November 2021, when Bitcoin peaked at over $68,000. Many investors buy in with the expectation that prices will continue to increase. But just a month later, the price dropped below $50,000, causing many people to panic and sell off.
Why Is $38,000 A Trap? 🔍
According to my observations, the $38,000 mark may be the price that many investors will encounter. This is the price that institutions and "whales" may have calculated to create price traps. When the price drops to this level, they will buy aggressively, while retail investors panic sell.
How to Take Advantage of Opportunities? 🎯
Instead of getting caught up in the market whirlwind, take advantage of opportunities when prices drop sharply to buy with a clear strategy. For example, I often use the Dollar-Cost Averaging (DCA) method to buy periodically, regardless of whether prices increase or decrease. This helps me reduce risks and optimize profits in the long term.
Name This Strategy: "Whale Trap Strategy" 🐋
This strategy requires you to be patient and not be affected by short-term market fluctuations. Always remember, investing in crypto is not a game of speed, but of intelligence and patience.
Conclude
The crypto market is full of opportunities and risks. Don't get caught in the trap of rising prices and always maintain your investment strategy. Hopefully my sharing will help you have a clearer and more informed view in this challenging game. Good luck! 🚀💪