Cryptocurrency market shows 'slow increases and sudden drops', what usually happens next?
This generally occurs during a rebound or in the stage of a trend reversal to the upside, a typical method of market manipulation in a bull market.
When a cryptocurrency finally rises for a few days, a sudden drop occurs one day, making the few days of increase seem insufficient compared to the single day of decrease, causing most newcomers and those with low tolerance to obediently surrender their holdings;
After the decline stabilizes, the market begins to slowly rise again. Generally, the stock price reaches new highs, and when it reaches a certain height with considerable following buying, the main capital may play the same trick again, leading to another sudden drop during the rise. Usually, this kind of decline is characterized by its speed and short duration.
Sometimes, in just a few days, the market can drop by 5%-10%; other times, it can last longer with a depth ranging from 15%-20%; but generally, it will adjust at the maximum limit of important support lines.
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