In the cryptocurrency market, 'slow rises and sudden drops', how will it typically develop next?
This generally occurs during a rebound or trend reversal phase and is mostly a typical bull market washout tactic.
It’s tough for a coin to rise for a few days, and then suddenly there’s a big drop in one day, such that the gains of several days are wiped out in just one day; this causes most newcomers and those with poor risk tolerance to obediently hand over their tokens.
Once the decline stabilizes, it slowly enters a rising phase again, typically with stock prices reaching new highs. When it reaches a certain height and there is considerable follow-up buying, the main funds will play the same trick again, leading to another sudden drop during the rise. Generally, this kind of drop is characterized by speed and a short duration.
Sometimes, in just a few days, the market can drop by 5%-10%; in other cases, it may take longer and range from a 15%-20% decline; but it usually adjusts to the maximum limit at important support lines.
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