Historically, whenever a top trading event occurs, barring a full-blown market crash, it is always followed by a clear emotional trough that is extremely predictable.
Taking the digital currency sell-off in the German market as an example, the sign of its bottom formation is often the subtle change in the remaining sell-off volume in the market. Perhaps when the number of remaining coins for sale is reduced to about 10,000 or 5,000 coins, keen big funds have begun to quietly make arrangements, indicating that the market bottom is approaching. After all, any violent market fluctuation has its limit, and long-term selling pressure will eventually be exhausted.
Let’s look at the case of CRV. The token has experienced two notable founder token liquidations and a far-reaching underlying technology vulnerability. In these moments of crisis, when founders are forced to take steps such as adding margin to maintain a margin of safety, market sentiment often hits freezing point. It is moments like this that become the harbinger of a rapid rebound in prices, as the market generally expects that the worst is over and prices will be quickly repaired in the short term.
We can find that in major trading events, the trough of market sentiment often heralds the arrival of reversal opportunities, which is a manifestation of market rules.
If you have been chasing ups and downs, often being trapped, without the latest news in the currency circle, and friends who have no direction, click on the avatar to follow me, for more information on the homepage, bull market strategies to escape from the top, skills to screen potential coins and logic.