Is it possible for the altcoin season to start without crashing? Unlikely. The reasons are as follows:
Big players and whales rarely buy in at high prices just to make a quick profit. They are very shrewd and always think about how to maximize profits, often at the expense of small investors. Their tactics are as follows:
1️⃣ Peak Sell-off ➡️
As soon as the price reaches its peak, whales begin to sell off in large quantities, causing the price to plummet suddenly, creating panic among everyone.
2️⃣ Retail Investors Follow Suit
When the price drops, small investors fear further losses and also start selling, resulting in an even sharper price decline.
3️⃣ Minor Rebound to Lure Traders
When the price slightly rebounds, traders think an opportunity has arisen, only to face another wave of declines. These small ups and downs are actually deceiving unprepared investors.
4️⃣ Quietly Buying at the Bottom
When the price drops to its lowest point, whales start quietly buying in large quantities at low prices, preparing to make a profit in the next cycle.
How to guard against these whale tactics?
You can't stop the whales, but you can protect your investments:
Take profits and exit
Don’t always think about making a fortune; when the price rises a bit and the profit looks good, take action. A small profit is always better than a big loss.
Set a stop-loss point
Set a stop-loss point for yourself, for example, sell if the buy-in price drops by 3-4%. Don’t wait for it to rise back; act quickly!
Stick to your plan
Before trading, think about how much you want to gain and how much you are willing to lose. Stick to your plan and don’t let emotions guide you.
Trading depends on discipline, not luck. Keep your wits about you, be prepared, and you can take fewer risks and make more money.
The market is currently volatile, and walking alone can be lonely. Click on my profile to follow me for daily spot potential layouts and bull market strategy layouts. #加密市场回调 #市场回调抄底还是观望？