Today, many friends mentioned to me that the market has entered a bear market, which made me think deeply. Its core view seems to be based on the misunderstanding of the bull-bear transition, that is, short-term fluctuations are directly equated with the overall trend, and an increase is regarded as the only sign of a bull market, while a decrease is equivalent to the arrival of a bear market.
Especially regarding the different performances of Bitcoin and altcoins, some people are worried that a small correction in Bitcoin may trigger a collapse of the altcoin market. However, this concern is based on a simplified logic and ignores the fact that the current market has entered a stage of differentiation, and many cryptocurrencies have been operating independently from the broader market. Last night's brief decline is actually part of the market's natural adjustment and is far from a signal of the end of the bull market.
The typical trajectory of a bull market is that it will experience several significant but non-terminal sharp corrections during its duration. These adjustments are like a baptism of the market, aiming to eliminate unsteady investors and promote the redistribution of wealth. After each adjustment, the market always resumes its upward trend and reaches new highs repeatedly. Until the last adjustment comes, it is the harbinger of the true end of the bull market, accompanied by a sharp decline.
Therefore, in a bull market, it is futile to pay too much attention to short-term fluctuations. We should focus on the long-term trend of the market. At present, there are various signs that the bull market feast is still continuing. We should maintain confidence and keep up with this magnificent trend.
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