When will the market really reach its peak? Let me explain it with a funny logic;
1. (Fish head) When the price hits the bottom or starts to rebound, only 30% of people are willing to take action to buy or go long, leaving 70% of people who missed out on the opportunity to watch foolishly;
2. (Fish body) When the price rises to a certain level, 30% of the people who bought in partly take profits, and the price shows a small correction. The people who missed out on the opportunity before decide to buy, and they occupy 40% of the total funds, and the remaining 60% of people watch foolishly;
3. (Fish tail) The price starts to rise again, and 40% of the people who bought choose to continue holding, while the remaining 60% of people also decide to buy, which means that the entire market is buying and going long, and no one misses out on the opportunity;
4. (Top) After the price rises wildly and rapidly, the earliest 40% of funds decide to sell. Since there is no one who missed out on the opportunity to take over at this time, the price quickly pulls back and plummets, leaving the remaining 60% of people trapped;
5. Since the remaining 40% of the profit funds are always less than the 60% of the trapped funds, in other words, the supply begins to exceed the demand for a long time, so the market goes bearish;
6. Anyone who buys the bottom in advance in the bear market will become a new supplier after being trapped, and the logic is the same as in the bull market;
7. Until the price falls to a level that allows 60% of the trapped funds to gradually sell until it is less than the amount of potential buying funds, the price begins to stop falling, supply and demand are balanced again, and the supply is gradually exhausted in the bear market. The early profit funds as potential demand once again occupy the majority;
8. (Fish head) When the price hits the bottom or starts to rebound, only 30% of people are willing to take action to buy or go long, leaving 70% of the people who miss out and watch stupidly;
9.......
This cycle sounds simple and crude, but from the perspective of supply and demand, it happens to be a virtuous cycle, because as long as the profit funds in a market are still willing to buy again or there is a continuous inflow of new funds, the price of this market will get higher and higher, but it will fluctuate greatly in the process;
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