Is the market crash in a bull market actually a “wash” strategy? Here are some insider insights you need to know!
Although the bull market seems prosperous, have you noticed that there are occasional sharp declines? Don’t worry, this is not a market crash, but rather a “wash” taking place quietly!
🌪️ Why are there frequent sharp declines in a bull market?
Many friends might ask: “Shouldn’t a bull market just keep rising? Why are there still sharp declines?” In fact, these declines are not market collapses, but the market is “cleaning” out retail investors!
In a bull market, many retail investors tend to follow the trend and buy in, with a very strong holding mentality and high trading stickiness. If a portion of these people are not washed out through sharp declines, the main players will have to spend a lot of capital to raise the price of coins, because retail investors will quickly sell as soon as they make a profit, resulting in immense market pressure.
🔥 What does “washing” actually mean?
In simple terms, the main players use sharp declines to force retail investors to cut losses and exit the market. Once these retail investors leave, only the main players with large capital remain in the market, allowing them to easily control the price of coins, further pushing it up and making substantial profits. Conversely, retail investors are cleared out in this process, becoming the “sacrificial victims” of the market.
💰 Why wash out retail investors?
It sounds a bit cruel, but this is the cruel game of the market. Without this wave of “washing,” the main players would face huge resistance when pushing up the price of coins. If retail investors make a little profit, they will choose to exit, resulting in the main players losing the money during the rise to retail investors.
Therefore, by washing out retail investors through sharp declines, the main players can not only increase their profit margins but also make the subsequent rises smoother.
🎯 To summarize:
So, when you see wave after wave of sharp declines in a bull market, don’t panic. This is likely the market preparing for a wash and for subsequent price increases.
And those steadfast investors who can hold on without selling often end up making even more in the future.
Recently, I plan to set up an ambush for a potential coin that is ready to explode, doubling is quite simple, and I also plan to find some potential coins to hold until the end of the year, expecting a space of over 10 times is not a problem. If you want to keep up, follow me, leave a message, like, and add me on QQ.
