Sudden Crash, Is the Bull Market Still Here?
Last night, there was a sudden wave of decline that wiped out all the gains from last week.
The market has entered a new round of panic, especially seeing so much money missing from accounts, which is psychologically hard to bear, worrying that the market will continue to fall, pondering whether to cut losses.
Some people keep slapping their thighs, thinking how nice it would be if they had sold at the high and could buy back now...
During a downturn, various negative emotions arise, and everyone must adjust their mindset and not let the gains and losses of a single moment affect their mental state.
Looking back at history, let's talk about this year's prolonged half-year of continuous decline. We have endured it; no matter how bad it gets now, it can't be worse than that time.
Generally speaking, before a real big market trend begins, there will be a washout. The goal of the major players in washing out is to remove retail investors' chips.
For example, when Ethereum rose to 3700, if you didn't take profits, a sudden crash would make you slap your thigh.
If the market rises again to 3700, would you consider selling?
If you can hold on, then after another crash down to 3300, would you regret it? If at this time the market rises again to 3700, would you sell?
I think most retail investors would choose to take profits.
If retail investors can still hold on, then there will be another washout, and basically, the retail investors' chips will be cleaned out completely.
The main players will analyze big data and start the market after retail investors have exited.
This is why retail investors who frequently trade will definitely lose money; human nature has been thoroughly studied by the main players.
As Bitcoin falls below 97000, the daily chart's trend has completely been disrupted, and the market may need more time to establish a new trend.
However, it seems that all of this needs to be completed before January 20.
After Trump took office, the government absorbed many leading figures in the cryptocurrency market, which is a very positive signal for the market.
Tonight's unemployment data also shows positive results; the market seems to find no negative news at all, but the market is still following the decline of U.S. stocks.
Moreover, this drop seems like the main players are fishing in troubled waters.
They quietly buy in, forcing retail investors to cut losses.
The only way for retail investors to make money in the cryptocurrency space is to outlast the magic with time.
