The recent continuous decline in the market seems to have pushed leveraged contract investors into a desperate situation. However, why did the market fall again after experiencing a decline? Here is my analysis:

• Reaction after the first decline: Dog dealers analyzed trading data and found that a large number of investors tried to buy at the bottom, and the contract positions rose accordingly. At the same time, spot investors who chased the highs did not sell their chips out of panic.

• Impact of the second decline: The second decline further destroyed the structure of many altcoins, causing naked K traders and a large number of retail investors to believe that the market trend had reversed, thereby selling their chips and detonating those bottom-fishing, more speculative aggressive long orders for a second time.

• Market Psychology during Christmas: Although Christmas is an important holiday in the West, it does not mean that the market will necessarily surge before the holiday. The market's rise is often prepared for astute investors, not speculators. Utilizing the festive atmosphere for a major drop to shake off optimistic speculators is a good choice.

In this analysis, we covered three roles: (market maker), (insecure speculators chasing highs and cutting losses), and (technical traders).

Of course, here are a few principles to keep in mind:

• Support and Resistance: Support and resistance do exist, but more importantly, the market maker judges the strength and timing of the decline through trading data. A prolonged decline can wear down a person's patience (Why isn't my investment rising? Should I change positions?), while a strong decline may trigger panic (Why are all my investments falling? I can't take it anymore, I need to cut losses).

• Strategy for a Bull Market: In a bull market, do not fantasize about buying at the lowest price. Being able to acquire tokens at relatively low prices, not chasing highs, not panic selling, and holding firmly is already good enough. Bull markets are not short of low-priced tokens, but I hope you can hold on, for example, buying Dogecoin at $0.30-$0.34 is a good choice.

• Role of Technical Analysis: There is no need to overly rely on technical analysis, but it can assist your judgment. More importantly, contrarian operations can survive in this market. As long as you can stay in the market, there may come a day when you can make a lifetime's worth of money in a short time, rather than just chasing highs and cutting losses.

Investment Maxim: I am fearful when others are greedy, and I am greedy when others are fearful.

Elon Musk themed little puppy 𝙋𝙪𝙥𝙥𝙞𝙚𝙨 holding address 16,000, market cap is less than 100 million, potential is pretty good.

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