The cryptocurrency market often experiences the phenomenon of 'slow rise and rapid fall', especially during the rebound or upward phases. This kind of volatility is actually a common method of 'washing' in a bull market.
After a coin rises for several days, the market suddenly experiences a significant drop, quickly erasing the previous gains. As a result, many novice investors or those unable to bear the pressure may choose to panic sell, leading to a large amount of chips being dumped.
However, once the price falls to a certain level and stabilizes, the market will begin to slowly recover. When the price corrects to a new high, more follow-up investors will enter, and the main funds will again take advantage of this, suddenly hitting the brakes during the upward process. This rapid decline usually lasts for a short time, potentially causing the overall market to drop by 5%-10% within a few days, and sometimes even 15%-20%. However, there is no need to worry too much, as these adjustments are usually supported near important support levels, and the market will gradually recover.
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