Bear markets often experience sharp rises, while bull markets often see sharp declines
The phenomenon of 'slow rises and rapid declines' in the cryptocurrency world typically occurs during market rebounds or upward trends. In simple terms, this is a common 'washout' tactic seen in bull markets.
When a certain coin has risen for several days, the market suddenly faces a major drop, causing the gains of those days to evaporate instantly. At this point, novice investors and those with weaker psychological resilience are likely to panic and sell off their holdings.
Once the price drops to a certain level and stabilizes, the market will slowly recover. When the price retraces to a new high, more trend-following investors will enter the market, and the leading funds will again employ the same tactics, suddenly causing the price to plummet rapidly. Such declines are usually fast and short-lived, with the main purpose being to wash out those with weak convictions!