When will the market really reach its peak? Let's explain with a humorous logic;

1. (Fish Head) When the price hits the bottom or starts to rebound, only 30% of people are willing to take action to buy or go long, leaving 70% of people watching foolishly;

2. (Fish Body) When the price rises to a certain level, 30% of buyers take some profits, causing a slight price correction, and the previous bystanders decide to buy in, accounting for 40% of the total capital, while the remaining 60% look on foolishly;

3. (Fish Tail) The price starts to rise again, 40% of the buyers choose to hold on, while simultaneously the remaining 60% also decide to buy, meaning the entire market is buying and going long, with no one left behind;

4. (Reaching the Peak) After a mad and rapid rise in price, the earliest 40% of capital decide to sell. Since there are no buyers to take the leftovers, the price quickly corrects and plummets, trapping the remaining 60% of people;

5. Since the remaining profit capital of 40% is always less than the trapped capital of 60%, in other words, supply begins to exceed demand for a long time, thus the market turns bearish;

6. Anyone who tries to catch the bottom early in a bear market will become a new supplier after being trapped, the logic is the same as in a bull market;

7. Until the price drops to a point where the 60% of trapped capital gradually cuts losses until it is less than the potential buying power, the price begins to stabilize, supply and demand are balanced again, and supply in the bear market is gradually consumed, with early profit capital reoccupying the majority as potential demand;

8. (Fish Head) When the price hits the bottom or starts to rebound, only 30% of people are willing to take action to buy or go long, leaving 70% of people watching foolishly;

9.......

This cycle sounds simple and brutal, but from the perspective of supply and demand, it is actually a virtuous cycle, because as long as the profit capital in a market is still willing to reinvest or there is a continuous inflow of new funds, the prices in that market will keep rising, although the volatility during this process is extreme;

For BTC, which is not influenced by external factors such as performance, financial reports, or management changes, the pure and simple supply and demand relationship is the main force determining the price, which is why BTC has experienced such high price fluctuations in the past 10 years;

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