To all cryptocurrency traders, it is important that you pay close attention to what I am going to say:
From my humble experience, I have noticed a very important point: small cryptocurrencies often start to rise significantly towards the end of the Bitcoin cycle 📈. And at this particular stage, the market usually starts to collapse 📉.
Reasons for this:
Currencies that hit highs in 2017 and 2021 rarely return to the same levels ⏳.
The reason? Whales 🐋 are moving liquidity from Bitcoin to smaller coins for exchange.
The market maker cannot sell large amounts of Bitcoin directly without impacting the market ⚖️, so it resorts to transferring new liquidity to less popular currencies 🌐 instead of the currencies that have seen a lot of buzz previously.
Clear examples:
Coins that hit peaks in 2020 didn't make it back in 2021 🔄.
By the same logic, the 2021 highs may not return to new highs in 2024 🔮.
The most important advice:
Always pay attention to market liquidity movements 💡
When you see small currencies starting to rise significantly, it is a clear sign that we are at the end of the market cycle 🚦.
Be very careful⚠️
Always use Stop Loss as a survival tool in case of market crash 🛡️.
The market is unforgiving, and big losses usually happen to those who ignore exit signals 🚪.
Conclusion:
Keep track of liquidity movements and be prepared for any scenario. Caution is key to survival in a volatile market like digital assets 💼