Altcoins experienced a sudden rise at the beginning of November, and now there's a waterfall decline. The altcoin season hasn't started, and it's already dropping! Don't panic, let me explain. First, you need to understand what a bull market is. In simple terms, the overall trend is upward, with significant gains and rapid increases. This also indicates high volatility. Altcoins typically fluctuate around 10%, and during a bull market, 15-20% is not unusual. Now, altcoins have broken through extreme support and are entering a vacuum zone. Some high-market-cap coins may pull back 75%, while those with low market caps could drop back significantly. Don't think that just because of the big drop, the bull market is over; otherwise, you'll lose everything. Remember, in a bull market, even if you get stuck with a long position, there's a chance to get out, but if you're trapped in a short position, just wait for liquidation.
Current solutions for altcoins:
If you hold a long position: don't cut your losses, wait for the price to come back and you'll regret it later. You can appropriately establish short positions to hedge. Wait for strong reversal signals before adding to your position to lower the average price of your long position, and prepare for the crypto frenzy after Trump takes office next year.
For those without long positions, or who didn't benefit from the recent surge: wait for the reversal signal at most. This is the best entry point in the golden pit of a bull market. Don't buy just because of the big drop; in a bull market, patience is key.