To be honest, this market trend can be described as 'slow rise, rapid fall,' and it usually goes like this!
There is a lot to learn here. Most of the time, it appears during a price rebound or when the trend starts to shift from falling to rising. In fact, it is a common tactic used by major players to 'wash out' in a bull market.
Just think about it, after a coin has managed to rise for a few days, everyone is starting to have some hope. Suddenly, there’s a big drop in a single day, and all the hard-earned gains from the previous days are wiped out in one day. At this time, newcomers are definitely scared, especially those with less capital and weaker psychological resilience; they simply can’t handle it and rush to sell their coins, obediently handing over their chips.
Once this wave of decline stabilizes, the market slowly starts to rise again, and there’s a high probability that the coin price will reach new highs. When it rises to a certain height, more and more people in the market start to follow the trend and buy coins. The major capital seizes the opportunity and plays the same old tricks, suddenly hitting the brakes during the rise. This kind of drop is very obvious; it’s extremely fast and short in duration. Sometimes, in just a few days, the market can drop by 5% - 10%. If it drags on a bit longer, a drop of 15% - 20% is also possible, but generally, once it drops near an important support line, it tends to stabilize.
Finally, let me remind you that the essence of trading coins is to ambush in advance, just like the recent hype around Musk's small dog coin pp, which is very popular, with over 16,000 addresses holding Ethereum, and a strong community. Brothers who are interested can like and ask me.